The seller just accepted your offer and you’re officially under contract. Typically you have about 30-45 days from the time the purchase agreement is accepted until the day of closing, and a lot can happen during that period of time. Here are some tips to keep the closing process running smoothly and minimize any delays.
One of the most important things you can do to avoid any hiccups during the closing process is to keep constant communication with your lender and real estate agent. Keep your lender informed of all dates that will impact the closing timeline, such as appraisals and inspections. Even if your closing is delayed just a few days, this may change your interest rate and impact your loan terms, depending on what type of loan you have. So keep your lender informed of every detail, ask any questions right away and communicate openly and honestly.
Review and Submit All Documents ASAP
Your lender’s part in this transaction is crucial so be sure to do everything they request, and submit all documents prior to closing, such as bank statements, tax returns or check stubs. Be part of the process, follow up with the lender and make sure you’re available. This way if your lender needs additional information, you can provide it quickly and avoid any delays.
If you have concerns about any lender documents, contact your loan officer the moment questions arise to ensure you have a complete understanding of the transaction before the day of closing.
Keep Your Finances Stable
Between contract and closing, avoid large purchases on credit cards or making any financial changes that will impact your debt-to-income ratio.
Your DTI and credit score are critical for approval and will be reevaluated at closing, even though you were pre-approved for the loan.
Determine Move Out Schedule Early
If there is a tenant in the home, or the property is the seller’s primary residence, you will want to establish moving arrangements prior to closing.
Ideally, the seller should make moving arrangements early and move out at least one day prior to closing, so the buyer can do a thorough and final walk through.
Read more: Novi Realtor Gives Final Walk-Through Tips
Each real estate transaction will vary. For example, maybe the seller has sold their home before they can find a new one, which is common in today’s market. In this case, the buyer may agree to let the seller rent the property for a specific period of time. The key is to address any occupancy terms prior to closing so there are no surprises.
Purchase Homeowners Insurance
Typically your lender will require proof that you’ve paid one year’s worth of insurance coverage before closing on a home.
This is similar to financing or leasing a car. You can’t drive away from the dealership until you provide proof of auto insurance. This is because technically the vehicle is not your property; it belongs to the bank until you pay it off.
So unless you are paying cash for your home, be prepared to provide your lender with your homeowners insurance policy. Consult with your lender early to learn what type of coverage is required, as it will vary from lender to lender.
Contact Oakland County Real Estate Agent, Tracy Wick for More Information
Tracy is a 25 year veteran real estate consultant and broker representing both buyers and sellers in Oakland County, MI.
Looking for more real estate advice? Contact Tracy Wick today by calling: 248.912.7407 or sign up for our monthly newsletter, The Scoop for the latest news and insider information.