Buying a home is one of the most exciting events in your life. By the time you get to the closing phase of the deal, it is quite common for people to already be thinking about moving in and starting their life in their new home. The closing process, however, can be quite complicated, and it is important to ensure mistakes are not made. Avoiding the following five common mistakes in the closing process can help ensure you are happy with the results, you get your new home, and you do not end up having to pay more than you should.
Problems with Closing Documents
If you’ve ever closed on a home before, you know that there are A LOT of documents that need to be signed. Each of these documents need to be prepared properly and have accurate information on them in order to ensure everything goes smoothly. If even one document is inaccurate, it can cause delays in the closing, and other issues.
Providing Inaccurate Loan Details
During the closing process you will be asked to sign the final legal documents related to buying the home. These are the legal documents that will be filed with the banks, courts, and others. If information is not as agreed upon, it can cost you thousands. For example, if the interest rate on the loan is higher than expected (whether due to an accident, or done intentionally) you will be responsible for that higher rate. Make sure to review each document to ensure everything is accurate.
Having Insufficient Funds
Your down payment will be due on the day of closing, so don’t wait to the last minute to get the cash available. Going to the bank or other financial institution the day before to verify funds are where they need to be, and that they will be available to transfer to the closing agent is a good way to avoid this potential issue.
Ignoring Issues Discovered with Final Walkthrough
Most people will do a final walkthrough of their new home before completing the closing process. If you discover an issue on this walkthrough, don’t be afraid to stop the process. This issue could be something small like a leaking sink, or something large like extensive damage to a wall that occurred while the previous owners were moving out. You can put the closing process on hold until these issues are fixed, and if you don’t, you will be responsible for fixing them.
Assuming There are No Title Problems
Never assume the prospective property is free and clear of title encumbrances without having an attorney conduct a thorough title search. If you have already had a title search conducted on the property, you may learn that there are issues with the title during the closing process. If, for example, the previous owner has several liens on the property, it is important to ensure those are addressed before moving forward with the closing or else you could run into problems in the future.
Don’t Try to Handle it Alone
Closing on a home is a very complex process, and not something that most people are qualified to do on their own. Having an experienced attorney at your side can help you to avoid common (and not so common) issues that people have when closing on a home. Contact The Law Office of Ray Garcia [Link to CONTACT US page] to get the legal help you need today.
Law Office of Ray Garcia, P.A.
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