In purchasing of a real estate property, the closing is the final step to become the owner. During the negotiation phase, the closing date is to be set, normally several weeks after the formal acceptance of offer. All terms of purchase contract should be met before the closing happens. Following are some tips while you are going to the closing make it painless.
- Communicate: There are many parties involved in the deal from the agent to the lender. Talk with all of them and discuss what to expect. It is better to you to know that they have everything they need from you for a painless closing, so get in touch with them. Get in touch and to discuss what to expect are key factors for a successful closing.
- Anticipate human error: Human errors are common. There are things missing of missing of loan and other mortgage documents. Some people may say that lack of proper knowledge. If you got any doubt, confirm with other real estate professionals or experienced people those who are involved in the process or outsiders.
- Review loan documents in advance: After you sign a contract on a real estate property, your loan officer will provide you with a good faith estimation (GFE). It should correlate to your closing statement (HUD-1) on closing day. You can get a copy of HUD-1 at least 24 hours before the closing day. Compare the HUD-1 form with the good faith estimate and review the loan officer before closing. If you have any questions or do not understand anything, ask them. It will save both money and time. It is better to ask the attorney to review all the documents before closing or do it by own.
- Take a certified check: One of the biggest mistakes by the purchasers while closing is, they will bring a personal check book or money or do the wire transfer. It will delay the closing process. Take a cashier’s check or a certified check from your bank for the certified amount on your HUD-1. It will save your time and do not delay the closing process.
- Take the day off: A smooth closing will just take less than thirty minutes. But remember, most of the activities on your documents in the loan industry will happen only before a few days or even hours. If there are any errors in the process and in the documents, they all have to be corrected. It will take a long time. There are so many loans which are scheduled at afternoon at two became sometimes night ten. So be prepared to take the day off.
Most part you can do for a smooth closing is keep on communicating with all the involved parties and get a clear idea on all the documents and process to arrange them properly.