Cash at Close
Here is a good real estate closing tip: if you find a problem with your property, do not ask the seller to fix it, ask for cash at closing. You may think you want the seller to repair the roof, replace the boiler or the floors refinished, but in reality, it does not make much sense. Not only can it delay your end date, but your sellers want out of this home so how much effort will they do to get the best service and highest quality replacement?
If you have cold hard cash in hand from closing, you can ensure that you buy the unit and may wish to hire the contractor you trust, or you can be certain repairs that you made yourself. Not only will a negotiation like this mean a faster closing, but you will have the peace of mind that the problem does not come back to haunt you in the next six months or a year.
Real estate closing delays
Terminations may be delayed in any real estate market. When a closure is delayed, it usually has something to do with the buyer's mortgage. To ensure that this does not happen to you, be diligent about giving your lender with all the documentation needed to give you the final loan approval. A lender will not prepare loan documents for you to write until all the lender's conditions for approval are met.
When the time of the closing comes, you will sign a lot of paperwork. This is nerve-wracking for many people as they sign the papers that are unfamiliar even if they are essential to protect everyone involved in the deal. Ask a closing agent to give you a copy of all the documents you need to check before your signing appointment. This may not be possible due to time constraints. But if you can view the documents in advance, signing can go smoother. You can opt for real estate closing solutions to have a smoother experience.
Be smart, do not spend
If you are under contract for your new home, be smart. Do not buy anything big on credit until you close. Think of it this way, when you got pre-approved for your mortgage, your income to debt ratio was examined thoroughly. If you change this ratio significantly, it could jeopardize the bank's ability to take out your loan.
It is much like baking a cake - you will not turn the oven up or down in the middle of baking, are you? So be sure to keep a financial status quo in your home purchase. You will sail through your closing and you can buy anything you want once the deed is safe in your name.
Tips For the Buyer
Buyer is responsible for what feels like a lot more than the seller in a real estate transaction. The burden of securing funding and orchestrating the paperwork for the purchase falls heavily on the buyer. In some states, title companies can conduct closings while others attorney must handle the transfer of property. At the closing table, the buyer must:
- Take all funds paid. This means you have to bring your downpayment, less deposit, plus some additional closing costs.
- Paperwork - buyer signs the lion's share of real estate closing paperwork including mortgage, the note and any information required by the bank. Review your spreadsheet showing all the fees you have to pay, to ensure that it is right. You do not want to pay for any junk fees that have been inserted at the last minute.
- Homeowners Insurance - To close, you must prove that you have secured homeowner insurance. This is required by all mortgage lenders to protect their investments. In some cases, you must obtain flood insurance too.