- Your mortgage rate could expire: Mortgage rates fluctuate daily, the rate your bank quoted isn’t good forever. The bank can “lock-in” your rate for 45, 60, or really any number of days. But once that lock expires, you may have to pay a higher rate. A bunch of things can come up and require the loan process to come to a halt… illegal renovations, open permits.. and much more.
- Your road to mortgage doesn’t end here: You’d think once you complete the application and submitted paperwork your loan gets approved and you’re ready to go. But some lenders verify income and assets at the last minute so don’t make any major changes to your finances until closing. That means don’t apply for new credit, get a new car, or quit your job while your home is in the closing process.
- The house isn’t yours yet! Real estate contracts require a walk-through to take place within 24 hours of close.. if things aren’t as they should be in your new home, you can postpone. Most of the time everything is good, so don’t worry about this part too much. Just be aware.
- Here’s some homework: Once the home closes, its completely your responsibility. The law is usually on the side of the buyer, and requires the seller to disclose any issues and confirm and prove they were resolved. Your realtor will be on top of this part. Just know your rights and the laws behind the contract. OR hire a superstar Realtor and they can help you with everything.
- Just so you know, closing is nothing like in the movies: Most of the time the buyers and sellers don’t even see each other the day of close… or anytime really. Buyers sign their loan documents in the privacy of their own homes and the seller shows up at the title company to sign off on the deed. Buyers wire their down payment and the sellers receive their funds electronically.
- What you can do in the mean time: Lookout for red flags and do your research. Have a solid team on your side, hire the best Realtor and he or she will bring with them the best title, insurance escrow and inspectors with them.
5 Things to Know As You Wait For Closing Day
Written by Deborah Mason-Rogers on . Posted in Community, Mortgage News
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