Closing on a House

Buying a home should be an exciting experience. However, many buyers find themselves stressed and feeling symptoms of buyer’s remorse because they have not educated themselves enough on home buying and they have not been organized about getting ready to move in to their new home. The more organized and educated you are, the more exciting the home buying experience can be. Be prepared for closing on your new house, it will make the experience so much better. First of all, do not do anything that might put your loan at risk. This means that making large purchases of any kind is out of the question. You should remember that lenders run a second credit check just prior to closing on the loan to check for new charges. Many people, not realizing this, find themselves in a different loan or losing the loan all together. This can really be devastating after all of the work and planning you have done to find the home and secure a loan. So just hold off a little while longer on that new car, furniture, or large credit card charges. When it is time to close on the loan, the lender will need you to pay the interest on your loan in advance from the closing day to the end of the month. This is a very good fact to know because closing towards the end of the month will save you from having to prepay as much on the interest. If you close at the beginning of the month, you might find a pretty hefty charge for interest in your closing costs. Be sure to verify this with your specific lender and know the rules that they apply to their closing costs so that you can keep yourself at the minimum. Before you can actually close, you will have to have the funds for closing deposited in escrow. Escrow is a third party agent that holds money in trust so that the receiving party can be assured they will receive the funds immediately upon closing. Making sure that you have those funds is also very important. The final walk through of your new house should happen as close to the closing sign off as it can be. Thoroughly check everything inside and outside of the home such as appliances, outlets, light switches, water faucets, and toilets. All promised cleaning and repairs should be finished, and all objects that are included in the purchase agreement of the home should be found. Be sure and review the contract to verify that everything is there and in working order. If you are buying a brand new home, there may be things that are incomplete. If so, get the builder to sign a written list of those things that need to be completed and when they will be completed. You don’t want to move into a new home that is not finished. Odds are, it will never get finished. Now you are ready to close on your new home. Notify the utility companies and any other services you will need so that you can begin enjoying your new home as soon as possible. Make sure this is an exciting experience instead of a stressful one.

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