If you find yourself reading about closing on your new home, then it’s time to get excited! All of the hard work, seemingly endless days and shopping for a home is over, and you can finally look forward to signing on the dotted line and officially becoming a homeowner.
As the closing date draws near, there are some things you should keep in mind. We’ve put together a few tips to help your closing process go smoothly and make counting down to closing something to look forward to.
Choose Your Title Company or Real Estate Attorney
Real estate transactions aren’t inherently difficult, but there are a lot of moving parts, plenty of entities involved, and potentially big money on the line. That said, the first step in preparing for closing is to choose a title company or real estate attorney to handle all of the fine details of your transaction.
Aside from your downpayment, closing costs will likely be your second-largest expenditure and for a good reason. Title companies go to painstaking lengths to ensure that your new home is clear of any legal disputes, remain in good standing with your local authorities, and generally make sure that no liens are held against it. Don’t skimp on getting the best title company or attorney you can afford!
Take Out Homeowner’s Insurance
Without a doubt, your lender will require you to have a homeowner’s insurance policy for the home you’re purchasing. Part of closing is ensuring that you’ve got adequate coverage to meet your lender’s requirements. Meaning, you’ll need to shop around for rates and coverages that both meet your lender’s needs and hit your pocketbook in the right place.
One tip to taking out homeowner’s insurance is to shop around for other types of coverage as well. If you have vehicles and need auto insurance, then use that as leverage to get the best overall rates from insurance providers. While it may be tempting to bundle your homeowner’s and auto insurance together, it may not always be the most affordable, so do your due diligence and shop around.
Gather Your Documentation
If you’ve already hired a title company or attorney, chances are there won’t be a whole lot of documentation you need to provide. To get to that point, however, you’ll need to provide plenty of documentation to both your lender and closing firm to finish the deal.
Your lender should be able to tell you what documents the title company needs and provide them for you. On the other side, your title company may need additional documents from you personally to help the closing process go more smoothly. Whatever the case, lenders and title companies work together regularly and either of them should be able to help guide you in the right direction.
Read Your Closing Disclosure, Sign, and Get the Keys!
A few days out from your formal closing date, your title company or real estate lawyer will send you (read: email you) a copy of your closing disclosure which outlines exactly what your final costs are. Federal law requires that this document be sent to you no later than three days before closing. Review it promptly, ask any questions you may have.
Finally, closing day! Get ready to sign lots of documents, but don’t worry. Everything you sign will be explained. You’ll have nothing to worry about except for what color to paint your bedroom. Once you’ve signed, you’ll get the keys and can start moving into your new house!
Closing on a home is an exciting time, but if you’re new to the home hunt, then get in touch with Tidewater Mortgage Services, Inc. Our loan experts have over two decades of experience in the mortgage industry and can help you and your family work through the process of buying a home. Apply online today and get pre-qualified in as little as 24 hours!