The final step in the complex home buying process is closing on a home. Even if you have gotten pre-qualified for the mortgage, found the home you wish to own, and negotiated and agreed upon all aspects of the sale, the deal can unfortunately still fall apart during the closing process. This is why participating in comprehensive first time home buyer education is so important.
Here are 3 key ways you can prepare yourself for the closing process.
Meet with your mortgage lender and realtor. Don’t let unforeseen costs hinder your ability to get the house you want. Well ahead of the closing date, set an appointment with your lender and/or realtor and ask to be walked through a broken down analysis of the costs of closing on your home. Get clarification on the amounts that are your responsibility, and the ones the seller is handling. Ask any questions and make sure you understand every part.
Set aside extra cash as a cushion. If you are rolling your eyes and muttering “what extra cash?” you are not alone. Most first time home buyers are strapped after coming up with the down payment and covering other moving expenses. However, if you want to maximize the chance of closing on your desired home, you need to try to put aside money to cover the home inspection, credit report, appraisal, and any other expenses you may not have budgeted in your initial plan.
Brace for roadblocks. While we all hope and dream our closings go smoothly, there are issues that can arise. A misunderstanding about the agreed upon contingencies and uncovered title issues are two of the ones would-be home owners frequently run into during the closing process. First time home buyer education helps you be aware that these can occur and how to handle them. If a barrier to closing happens, calmly weigh your options and decide how to proceed, up to and including delaying the closing so the problem can be resolved through additional negotiations.
As you near the end of your home buying process, you must remember that until you officially close, the deal is not set in stone. Participate in thorough first time home buyer education to equip yourself and your family to be prepared for the closing process, and empower you to handle potential pitfalls. For more in-depth and expansive first time home buyer education information, download our eBook now!