You have worked hard, shopped around and found the perfect home for you and your family. And the best part is, it is within your budget range.
Buying a home is a big deal. Unlike any other purchase, you are investing in a sanctuary for you and the people you love most. The last thing you want is to make one or several mistakes that can potentially turn your dream into a nightmare.
While mistakes happen, it is in your very best interest that you avoid these two mistakes when closing a real estate transaction:
Failing to read and understand the paperwork
Home purchase comes with loads of paperwork. It is in your best interest that you read and understand what you are getting into.
Remember, once you sign the closing contract, you will be bound by its provisions. The best time to catch errors or raise any concerns is before showing up for closing – the earlier, the better.
Failing to update relevant parties about any changes
Have you changed jobs or gotten married before closing? Do you want to rent out the property instead of using it as your residence? These decisions can impact your home financing and closing process and, as such, it is often important that you notify your lender of these changes before coming to the closing table.
Still on changes, it is often critical that you avoid major financial undertakings during the closing process. Getting into a huge debt can throw off your financing and complicate your closing process.
Failing to take into account the closing costs
It is not uncommon for prospective buyers to forget to set aside cash for costs that are due at closing. Most buyers prefer using personal checks for these payments. However, it is important to understand that a personal check does not offer the same guarantee as cashier checks. Most often, closing agents will require that you use wire transfer or cashier checks for these transactions.
When it comes to a home purchase, there are a couple of things you need to do before the property becomes officially yours. You may find out how you can safeguard your rights and interests while closing a real estate transaction.