Real Estate Closing Tips for Beginners
• Do your due diligence. Both before you make an offer and afterward, you should do your due diligence on the property to make sure what you want to buy is what you’re actually getting. Did the seller or real estate agent agree to make improvements, and were they made properly? Did you receive any improvement credits, and are they present on the closing statement? When you’re going through the closing process, make sure you’re informed about what the process entails. You can help make your real estate closing smooth by being knowledgeable about the process. Follow some of these tips to make sure your closing goes as easily as planned.
Before you get the keys to your new home, you’ll have to go through the process of a real estate closing. Real estate closing can be scary, especially if it’s your first time. These tips can help you learn more about the real estate closing process and how to make it go smoothly:
• Double check your loan. Make sure you’re absolutely sure that the loan you were approved for is the loan you’re getting. Don’t wait until the real estate closing to learn that your interest rate is more than you anticipated.
• Check the closing costs. “Closing costs” is a general term for a series of smaller financial transactions that will take place during the real estate closing. In addition to other things, be ready to pay for a credit check, money transferring fees, document prep fees, mailing costs, real estate agent fee and escrow costs.
• Take your time. A real estate closing can take awhile – you’ll need to set aside at least a few hours to travel to the closing location, sign all the paperwork and deal with any last-minute problems. Although a smooth real estate closing can take as little as an hour, in reality, you’re likely to be tied up for at least two, if not more.
• Prepare for the future. Work with the seller in advance to make sure that you’ll have utilities when you move in. You can avoid many unnecessary costs by transferring the utilities from one name to another. It can cost far more time and money if they’re turned off and you need to have them turned back on. You’ll also want to ensure that the previous owner has vacated the property. Believe it or not, some sellers attempt to remain in the home after the closing.