You’ve made it through the long homebuying process and overcome several stumbling blocks. But there's still one big step left- closing on a home! Learn more here!

As the closing day nears, you’re likely to be anxiously waiting for the moment you finally become a homeowner. Up to this point, you’ve scrimped and saved for down payments, spent days or even weeks looking for a home, and finally found your dream house. But if you’re like most homebuyers, the happy rush of buying a house battles with fear as you sign your name to a huge mortgage while facing down an intimidating stack of papers covered in legalese. To help you with that, here are a few tips for easy closing on a home:

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  Assemble your dream team

  
  


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  Have your finances in order

  
  


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  Beware of the closing costs

  
  


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  Plan out your method of payment

  
  


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  Review your closing disclosure in advance

  
  


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  Bring all the necessary documents

  
  


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  Don’t make huge life changes

  
  


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  Go into your closing day with confidence

  
  

Assemble Your Dream Team

Before stepping foot on the open house welcome mat, you need to have a solid relationship with a real estate agent. You need their expertise if you want to make the most out of your real estate transaction and enjoy a fast closing. That’s because a real estate agent understands the closing process and all issues that could delay your home closing. As such, they’ll recommend the steps to take to avoid delays as well as other professionals you’ll need to help you close. That can include a title agent, insurance agent, attorney, or escrow agent. That’ll help save time because when you find the house you love, your team will already be in place to help you. 

Have Your Finances in Order

Did you know that over 37% of home closing delays are caused by financing issues? One of the most helpful things you can do to avoid this is to get a mortgage preapproval. If you know how much you can take out for a loan, it’ll help you not only while house-hunting (search for a home you can afford), but also at the closing, where many people often discover they’re in over their heads. 

Beware of the Closing Costs

Closing costs are fees paid to the lender and other third parties to close on your home. They’re often about 2%-6% of the purchase price of the house. They can include fees like origination, title insurance, appraisal, inspection, and application fees. You might also have to pay mortgage insurance depending on the type of mortgage you take out and how much you put down. 

Plan Out Your Method of Payment

The party handling your closing will inform you a few days in advance of the money you need to cover closing costs or the remainder of the down payment. However, don’t plan on paying your closing costs with a money order or a personal check. Closing parties don’t often accept those forms of payment since there’s been so much history of counterfeit checks and money orders. Typically, you should ask your closing representative to provide you with the exact closing cost required and how it should be paid, for instance by wiring the funds from your bank to theirs in advance of the appointment.

Note: If you're bringing a cashier’s or certified check, verify the exact amount required in advance, so you don’t need to arrange a refund. 

Review Your Closing Disclosure in Advance

The mammoth stack of paperwork that needs to be notarized and signed makes many homebuyers nervous on closing day. And with the financial weight of the mortgage on line, it can be tempting to want to examine each word on every page, which would take the better part of the day. The good news is that you can speed up the process by reviewing your closing disclosure before closing day, which will include crucial information including your loan terms, interest rates, and estimated monthly mortgage payments. 

The lender is legally required to provide you with your closing disclosure three business days before closing and the Consumer Financial Protection Bureau has a checklist to guide you to check for issues and flag them in advance. A few key aspects to confirm include:

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  The spelling of your name, contact information, and address

  
  


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  The loan amount, type, terms, and interest rate

  
  


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  Information related to the seller concessions, warranties, and fee coverage

  
  

Bring All the Necessary Documents

It’s wise to keep all of your paperwork together from the very beginning of the homebuying process to the very end. That includes documents that have been requested, such as income statements and pay stubs, as well as documents that have been provided. Also, as the closing day draws near, you’ll have access to a closing checklist, listing all the items you need to bring on closing day. Double-check all those items and ensure that they’re in one folder a few days before closing.

Don’t Make Huge Life Changes

We get it: You’re eager to furnish your new home. But you may need to hold your horses on new purchases. You should try to avoid making huge life changes during the mortgage process. Life changes can include making large purchases, changes in the job, and moving money around in accounts. These changes are risky since they’ll lead to more questions during the underwriting process and more time may be added to the normal closing time frame. Also, note that anything that may affect closing might cause the seller to back out. 

Go Into Your Closing Day with Confidence!

The day you close on a home is full of a chaotic mix of excitement and anxiety. But with this comprehensive guide, you’ve got tips you need to know to go into your closing day fully prepared to take this final step with confidence. For more information about closing on a home and the entire homebuying process, consult our real estate agents today! We’re here to help, call us now and let’s help you achieve your homeownership dream smoothly and seamlessly!