A successful close

Obtaining a mortgage is a long and sometimes very arduous process. First you have to find a lender, and then you are bombarded with numerous terms and rates and have to figure out what they mean.

Once you have knowledge of the process, you have to hope that you are accepted for the loan program you desire.

The process is almost done; you have gone through most of the steps, now all you have to do is close.

The article, “Tips for a Successful Closing,” posted on mortgage.fidelitylabs.com provides valuable tips to ensure that you successfully close on your home.

“The closing is the meeting where funds and property ownership is transferred between buyer and seller. It's a point at which all participants in a real estate transaction are highly invested in a successful outcome, and much is at stake. If it were a gangster movie, it would be the scene where the climactic gunfight breaks out. Problems at the closing table could torpedo the entire deal. In order to prevent surprises, arrive prepared and informed.”

The buyer seller, realtor, lender and title insurer will all be present at the closing, most bringing lawyers. Actually the seller and real estate agent usually skip the closing and just send their lawyers. And, of course, everyone is entitled to bring a lawyer. In fact, don't be surprised if you end up alone with a room full of lawyers, as home sellers and other agents frequently skip closings.

Now that you know who will be attending, it is imperative for you to do your homework.

You should have a fond knowledge of the various aspects and expectations of the closing process.

Now, a week before the closing you should purchase homeowner's insurance for your new house.

“Your home is collateral for your debt. If it's not insured, the loan won't be approved by the lender. If you don't have insurance already, the assembled lawyers, agents, notaries, realtors, and bankers will wait while you phone your insurance agent, and wait some more while the agency completes the paperwork and faxes your proof of insurance over. A closing is painful enough. Don't drag out the agony by forgetting the insurance.”

About three days before closing you should check with your real estate agent to make sure the seller has signed all the necessary paperwork and complied with every thing that is required to sell. They will be checking on your progress as well.

The day before the closing you should compare your Good Faith Estimate of closing costs with your settlement statement. Prepare yourself to discover that your actual costs may be higher than the estimate. After all, it is just an estimate.

One of the last and most important things to do prior to closing is to do a final walkthrough of the house to make sure everything is the way you expected it. “The seller may have absconded with appliances you paid for, or left some repairs incomplete. If it's at all possible, a good time for the walkthrough is on your way over to the closing office.”

“Also on Closing Day, review any list of documents or instructions given to you by your realtor, lender, lawyer, or other agents and call to confirm details if necessary. Obtain a cashier's check for the amount of money needed at closing (you may want to do this before closing day). It should go without saying that you have to bring money to a real estate closing, but you'd be surprised how many people attempt to make their down payment with a personal check, a credit card, an IOU, or a bag of empty soda cans.”

Again, make sure you know what you are getting yourself into. Do a thorough walkthrough and read everything in the closing documents. Then have your lawyer read everything.

Be prepared.

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