5 Things to Know As You Wait for Closing Day
The final days leading up to closing can be really intense. Afterall, you’re about to spend a lot of money and take a major step toward the next phase of your life. Even if you are moving within a city that you are familiar with, moving can cause all kinds of emotional turmoil within your household. Here are a few home buying tips you need to keep in mind while you count down the days to closing.
1. Your Credit is Still On the Line
The number one thing you need to know before you go to closing is that your bank will check your credit one last time before they give the go-ahead to close. This usually happens within the last 48 hours of the closing window, so you need to be careful. Do not run out and make a major purchase of any kind that could compromise your credit score. That means no new cars or credit cards until all those papers are signed.
2. Don’t Jump Jobs
Again, all the paperwork that you have submitted to the bank up to this point is still under review. This includes your pay stubs. If you suddenly take a new job and create a gap in your income, your bank may require you to wait several months before submitting new pay stubs. Do your best to stay put until the house is closed, and then you can make whatever career moves you want.
3. Keep an Eye on Your Mortgage Rate
While you may have had a pre-approval going into your house shopping adventure, those letters generally expire within 30-90 days. If it took you a few weeks to find the perfect house before you went under contract, it is possible that your pre-approval will expire before the loan is closed. While you probably still qualify for the loan itself, you may notice that your interest rate has changed since you first applied. This can have an impact on your projected monthly payments and the amount of money required at closing. Make sure you follow up with your loan company to get more details.
4. Make Sure Your Insurance is Lined Up
Your mortgage company won’t let you close unless you have an insurance policy picked out. In general, the mortgage company will be responsible for handling your escrow account and paying your insurance premiums themselves. You can use the 30 days or so before closing to research and compare different insurance options to ensure that you are getting the best rate. Don’t settle for just anyone.
5. Stay on Top of Inspections
Your inspections usually need to be done within the first week or two of having a signed contract. However, any repairs or other updates that need to happen can take place at any point thereafter. If repairs are required, you will have the opportunity to follow up with a final walkthrough and ensure that the work was done properly and passes inspection. Don’t wait until the last second to check on these items because once the papers are signed, the seller is far less likely to make any agreed-upon repairs.
With these home buying tips, you should be well on your way to a smooth closing. Just remember not to get too wrapped up in the emotional turmoil of buying a house, and instead focus on the practical things you can do to protect your investment and keep your credit healthy in the mean time. Once the papers are signed, you will have plenty of time to celebrate and enjoy your new home.