You can have a stress-free closing on your next purchase.
It doesn’t have to be filled with frustrations, but with so many details to consider, including neighborhood, square footage, home features, room count, and value vs purchase price, it can seem like the process causes more stress that it’s worth.
But of course, buying a house is an important part of our lives. For most Americans, buying a home is the largest purchase they will ever make. It’s an investment in the future, a chance to have a piece of property that is solely your own. Part of this important process is the mortgage, which, if not handled properly, can be a source of stress and frustration all by itself.
You don’t have to stress when you buy a house. While we can’t guarantee the process will bring tranquility, we can provide a few tips to help you have a stress-free loan closing.
Simple Tips for a Stress-Free Closing
Research the Mortgage Industry
Knowledge is power. Lack of knowledge brings confusion, and confusion inevitably leads to stress. To reduce your overall stress throughout the mortgage process (and the entire real-estate purchase, for that matter) you should do everything possible to be fully informed on mortgages.
To get the best mortgage for your specific needs, you should research the aspects of various loans. What is a conventional loan? What are the advantages of a VA loan? Should you use an FHA loan? What loans are available with zero downpayment?
It also helps to understand the impact of interest rates, how downpayments can impact your loan, the most important factors for lender approval, and other aspects of the mortgage process. By understanding these details, you are more likely to find the perfect loan for you needs.
Hint: our website is loaded with useful information on loan types, approval, and more!
Organize, Organize, Organize
Your loan needs lots of documentation, and having everything lined up before you meet with a lender can be extremely beneficial. Most of all, it reduces time, as having everything ready gives the lender an opportunity to move forward with the loan quickly.
Before you visit with a lender, print out all of your important documents. Take the time to get bank statements, and print out information related to your credit history and debt load. With this information compiled in a convenient folder, you can move through the mortgage process quickly.
Make the Closing Date Clear and Specific
Everyone involved in the closing process should be absolutely clear on the closing date. Having a date puts a specific timeline on the process, helping to move things forward and reducing the chances of procrastination by other parties. After all, if there is no deadline, things like inspections and updates may be completed…eventually. And we all know that “eventually” can weeks or even months. (But hopefully not years!)
Work with the seller and all agents involved in the process to define a specific closing date so everyone understands what has to be done and when completion is expected.
Secure Insurance Quotes Right Away
You will need to have homeowners insurance in place before you move into your new home. This is a critical part of the process, and if you are taking out a loan it will be required. You should also see if your home needs specific insurance for natural disasters like fires, floods, or hurricanes.
Get quotes, compare rates, and even ask your home-owning friends and family members for advice on choosing the right insurance for your needs. Your real estate agent can likely provide advice on insurance as well.
Have a Final Walkthrough
Before your closing date, you should have one final walkthrough at the property. Make sure the condition of the property is how you remember, and make sure all agreed-upon items are left in the home. Perhaps just as important, make sure all items are removed that should be taken away so they don’t become your personal problem.
During the walkthrough, you should also test appliances and other home features to make sure they are still in working condition. If you notice any issues during the walkthrough, bring these up to your realtor and see if additional measures are needed.
Know Exactly How Much You Owe in Fees and Closing Costs
The last thing you want when you go for a closing is to have any surprises. Do yourself a favor and calculate how much you will need in total costs to close on the purchase. The numbers can vary, but you can likely assume around 5% (at least, although there are low- or no-downpayment options) as well as a few thousand dollars for fees and other expenses.
Have this money ready from the very beginning and you’ll have a more positive, stress-free closing experience.
Start Now…as in Today!
We all know that life is busy. We understand that there is work, school, and many other responsibilities. It may seem like your life is too busy for any more tasks, but if you want to have a stress-free closing, it’s essential that you start as soon as possible.
Starting today, you should begin to research the process of taking out a mortgage. You should start to prepare documents for lenders, and you should begin to save money for the downpayment and fees that you’ll eventually need to pay. There is no such thing as starting too early, so start now!
Accept that Delays and Complications will Happen
It’s very simple: issues may occur. Delays may happen. But that doesn’t have to mean the deal is off. Be prepared for any complications, accept them as part of the process, and you’ll be mentally prepared for a stress-free real estate closing.
The Support You Need for a Stress-Free Mortgage Loan
Are you ready for a mortgage? You deserve to work with a team that will explain all the details in clear, understandable language, so contact us today.
We are dedicated to outstanding service and support for your mortgage, and we’ll do whatever we can to help you have a stress-free real estate closing by providing an affordable, high-quality home loan!