Everyone wants to have a quick and smooth closing on a house, especially the buyer. If you are a home buyer, then there are actions you can take to make sure that the closing goes as easily as possible.
“If you are getting a loan, then the closing will be nothing less than 30 days,” says Saria Finkelstein, buyer specialist with The Laurie Finkelstein Reader Team of Keller Williams Partners in Plantation, Fla. “It’s all about who you work with these days. Everyone should eon the same goal to get to that closing.”
Here are some actions a home buyer can take to make the process of getting to the closing much quicker and easier:
Get a preapproval letter
One of the first steps a home buyer should take is getting a preapproval letter from their lender. This lets all the parties know how much the lender is willing to give to the home buyer.
This helps a lot in the buying process, especially when it comes to actually finding a home that’s within your budget.
Find the right realtor
When you look for a realtor, be sure to bring a list of questions to ask them. Also, ask friends and family who have recently used a realtor. If they had a positive experience, you might want to use them.
You should also look up their credentials, their affiliations, and the website. If you aren’t working with a reputable realtor, it could go the wrong way for you, says Finkelstein. Go on Yelp and read their reviews. Buyers need to inform themselves.
Find the right lender
Finkelstein recommends finding a mortgage broker, not a banker. “Bankers don’t need a mortgage license. They won’t answer your phone calls on weekends or on a Friday night,” she says. Also, read customer reviews of lenders to make sure they’re a good fit.
Be honest with your realtor and lender
Finkelstein has experienced situations where buyers pay companies to remove something from their credit history so they can be preapproved for a loan. “It always comes up later in underwriting,” she says. This can end up ruining the entire process.
Also, if you have other financial problem areas that need to be revealed, do so ahead of time so they might be resolved quickly.
Get all paperwork to lender quickly
Your lender will want a lot of information, such as your federal tax returns from the last two years, recent paystubs, W-2 statements, bank statements, alimony and child support payment information, and much more. Get it to them quickly to make sure they have everything they need.
Make sure title is cleared
Your real estate attorney or title company will order a title report to make sure everything is good before the closing. Keep in contact with them to make sure there are no liens on the property which could delay or cancel your closing.
Don’t change jobs or change your credit
Even after Finkelstein went through all the things a buyer should not do during the loan process with her friend, he did a few of those things. “I told him I’d sell him a house in two years, because he hadn’t listened,” she says.
Some of those things you shouldn’t do include quitting your job, financing new furniture or a new car and moving your money around in your accounts. Don’t do anything that will send red flags on your credit. Always wait until after the closing to go buy anything new for the house.
Go to the inspection
During an inspection, you get to see your future home with an expert who can tell you all the good and bad things about the building. This can give you a better idea of what negotiations should be made to the seller about improvements needed.
If you can agree on what needs to be fixed or what deductions from the purchase price will be made, the closing can keep on track.
Buy homeowner’s insurance
Lenders will require this, and that information has to be known by the closing, and it usually has to be paid for by then, too.
Don’t forget photo ID and certified check
The day of closing can be exciting, so don’t forget to pick up that certified check at the lender’s office or forget to bring your driver’s license. Sometimes, the money is wired from the lender, but that can also cause delays if it doesn’t come in time. Check with your lender of when it will be wired.