It's Not Over Till It's Over: Home Purchase Closings
If you are on the search for a home, you likely already realize that purchasing a home is a process. Once you have found your dream home and the seller has accepted your offer to buy at a given price, you have reached an important milestone. You should understand, however, that the time period leading up to the that wonderful closing date could be fraught with issues, many of them unexpected. Read on for an overview of some problems that commonly occur and that could throw a monkey wrench in your way.
That highly-valued low mortgage rate expires
Once you have obtained financing, you are commonly provided with a "locked-in" rate that expires in a certain period of time. In most cases, you are able to close on your home before the rate expires. The amount of time allowed varies, but it may be as little as 60 days or as much as 90 days, but you should pay close attention to the expiration date on your mortgage paperwork.
What might cause delays in closing on time? In some cases, delays occur due to administrative issues or issues with scheduling. In other cases, there are problems with the owner fulfilling contingencies on time. For example, if your home inspection found termites, the home would need to get the problem eradicated and the damage repaired prior to the closing. Be sure to keep a close eye on the dates as your big day approaches.
You neglect to keep your credit spotless
Getting approval for a home loan is not a "one and done" deal. Your credit is checked continuously during the time period leading up to the closing date, so be sure to stay on top of paying your bills on time and don't request or add more debt obligations. Additionally, don't make any large purchases, even using cash, or take money from your savings account for any reason.
Your home is not ready for you to take ownership
Those contingencies clauses will not only affect your loan rate expiration, it could also cause you heartburn during the final weeks before closing. It is up to you to ensure that everything on the contingency list has been taken care of, so don't sign any final paperwork without a walk-through to check that repairs have been made and that the home is ready for you. Some common issues to be aware of include furniture, appliances or equipment left in the home, dirty carpets and more.
Talk to your real estate agent for tips on surviving those last minute issues prior to closing. For more information on single family homes for sale, contact a real estate agent in your area.
