You're ready to start the process of searching for your next home, but you're a little apprehensive about all the steps associated with the process. One stage that our real estate agents suggest you learn about is the closing process.
The closing process is the last major stage of buying a home before you're officially a homeowner. Here's what you should know.
- It Takes a While to Reach the Closing Phase
From the point that the home seller accepts your offer, it usually takes between 40 and 60 days to close on the property officially. There are often a lot of documents that you need to turn in for your mortgage application to officially be processed. Even if you're obtained mortgage pre-approval, you still need to submit documentation to verify your income and assets. Depending on how busy your lender is, it might take a few weeks to process your loan. You also need to schedule any inspections that are required or recommended to buy the home, like a home appraisal, home inspection, or property inspection, during this period. It's possible to potentially extend the closing date if the home seller and buyer agree to do so. Sometimes, one party might need an extended period to sell a property, find a new home, or handle other personal matters.
- Your Closing Date Could Be Delayed
It's possible for items to pop up that delay your official closing date. For example, if your home inspection shows that the property needs some repairs and the seller agrees to fix them, these repairs can delay the closing date. Or, if you take out a new loan or credit card while you're waiting to close on the home, your credit might be impacted. This means that your mortgage lender may need to review the specifics of your loan to confirm that you still qualify. To prevent your closing from being delayed, avoid making any changes to your financial situation. Don't apply for or take on new debt. Keep the balance in your savings accounts consistent; if you do make a large deposit to your bank account, make sure that you have documentation that proves where the funds came from (your lender will want to confirm that the money isn't from a loan or credit cards). Changing jobs is usually okay if you otherwise have a stable employment history. Just make sure that your income doesn't significantly change, or this can affect your loan approval.
- There Are Certain Things You Need to Bring to Your Home Closing
To close on your new home, you'll need to make sure you have the necessary items to ensure everything goes smoothly. You'll need some kind of government-issued identification, like a passport or driver's license. A certified check may be used to pay your portion of your down payment and closing costs, or if permitted by your lender, you may use a wire transfer to transfer the money. If this money will be coming from different investment or bank accounts, make sure that you give yourself enough time to transfer the funds. You also need to bring proof of your homeowner's insurance on your new home.
Ready to find your next home? Our team is ready to help every step of the way. Contact us today to start your search!