The closing is the final process in buying a home, or any real estate purchase. Normally, everything goes wrong but there is still this chance, no matter how small, that something may go wrong.
Simply think that nothing will go wrong but have a plan, just in case. Let us assume you are buying a home and everything has been arranged, from the cost to the date of the contract signing and when the keys would be handed over to you. With the help of US News Money, we can at least anticipate what is going to happen.
Setting the scene. It will likely happen in a nice meeting room and there will be a lot of professionals around you, all making big bucks, because hey, you have made a great contribution to the economy by deciding to purchase a home.
Accompanying you would likely be your real estate agent and a closing attorney, the title closer and the lender, according to operations and underwriting manager at Equity Now, a direct mortgage lender based in New York City, Matt Hackett. He suggests that if you have a co-borrower, it is best to sit next to each other instead of across the table.
He explains, "It will speed the process to sit in a way in which it will be easy to pass papers around. Expect a lot of paperwork to be passed around the table for multiple people to sign."
Keep TRID in mind. TRID stands for TILA-RESPA Integrated Disclosure Rule, which became the law of the land on Oct. 3. You will get forms and you have three days to look things over. Unlike before in which the buyers would not see the closing statement until the closing day itself says Bill Golden, an independent real estate agent with RE/Max Metro Atlanta Countryside.
Don't buy anything expensive before the closing. It is not easy to get an approval to borrow a lot of money for the house. You do not need new car or furniture before the closing. If you wish to, wait until the transaction is closed. Otherwise, there is a risk that the credit may be pulled out when the lender learns of it.
Bring proper identification. "For the most part, the lender and title company or settlement agent will bring all the necessary paperwork," says Naveed Shah, a real estate agent with Keller Williams Realty in McLean, Virginia. Ask questions. After all, it is a huge commitment and a lifetime of investment even.
There you have it. Are you excited to close that purchase of yours?
