Whether you are a first-time homebuyer or onto your second or third purchase, closing on a house can be a complicated process. You are making a big decision. Buying a home is one of the biggest investments you can make in your lifetime. That’s why it’s so important for the closing to go smoothly.
It’s helpful to read up on some common mistakes homebuyers tend to make.
Jumping the gun
For all the planners out there, it’s tempting to put everything in motion once there’s a hint of a closing. But it’s wise to hold off on big purchases like a fridge, couch or LCD TV until the done deal. Why? Because these large purchases can affect your credit and loan approval. Additionally, you should hold off on setting a date with the movers until the actual closing date is confirmed.
Assuming the best
Just because a seller or real estate agent says something works, doesn’t mean that’s always the case. It’s best to be thorough when inspecting the home. Check windows, electrical outlets, facets and any appliances that come with the purchase. Be sure to discuss with the seller what items will be left after the closing, such as lawn decorations or furniture.
While there are planners, there are also procrastinators. Try to supply your lender with the requested documentation as early as possible. Delays could cause the lender to issue a loan commitment. Also, if the seller promised to make repairs, make sure those are completed before the closing.If not, they should give you the funds to finish the repairs.