Closing on a new home is a complex process. It’s lengthy, filled with paperwork, and things can change at the drop of a hat.
If it’s your first time buying a home, here are a few things to keep in mind when entering into this process.
1. Always Get an Inspection (Always!)
Do not close on a house before a formal inspection is completed. If a seller is requesting you to move forward before this has taken place, it’s time to walk away. They are likely trying to hide a major problem.
2. Read & Sign Everything Carefully
There is a lot of paperwork involved in closing on a home. This is largely due to the huge quantity of lawsuits that arise from home sales/purchases. Don’t drive yourself crazy – but be mindful of what you are signing, ask questions when you need to, and take your time. Better safe than sorry when it comes to legal matters!
3. Eliminate or Split Closing Costs
Typically, closing costs are split between the buyer and the seller. Sometimes the seller can be convinced to pay closing costs as well. Your broker can negotiate this on your behalf.
4. Come Prepared
When it’s finally time to seal the deal, make sure you come with all the documentation you need. This can include:
- Proof of homeowners insurance
- Personal ID documents
- Inspection reports
- Bank paperwork
- Your contract with the seller
5. Know That You Have 72 Hours to Cancel
Mortgages typically come with a 72-hour window where you can cancel the closing. To know more, ask your loan originator about it as they’re required to inform you.
Closing on a house is a taxing process. Most of all, keep a calm head on your shoulders as you close on your new home!
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