Close the Mortgage

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The final stage of the home buying process is the lender’s confirmation of the home’s value and legal statue, and your continued credit-worthiness. This entails a survey, appraisal, title search, and a final check of your credit and finance. Your agent will keep you posted on how each if progressing, but your work is pretty much done. 

You just have a few preclosing responsibilities:

  • Stay in control of your finances.
  • Return all phone calls and paperwork promptly.
  • Communicate with your agent at least once a week.
  • Several days before closing, confirm with your agent that all your documentation is in place and in order.
  • Obtain certified funds for closing.
  • Conduct a final walk-through.

On closing day, with the guidance of a settlement agent and your agent, you’ll sign documents that do the following:

  • Finalize your mortgage.
  • Pay the seller.
  • Pay your closing costs.
  • Transfer the title from the seller to you.
  • Make arrangements to legally record the transaction as a public record

Buyers are often responsible for paying the closing costs when they pay the first deposit on the home.

Some lenders offer special deals to allow the buyer to close with no closing costs. But beware, the costs will be somewhere, usually they are added to the final loan amount and you may even incur a higher interest rate. You may want to look at the typical costs in your area and talk with the lender to get a estimate of the closing costs for a particular loan.

Another approach would be to negotiate this will the seller to avoid or split the closing costs. In some instances this may allow the buyer to pay a lower interest rate and reduce the amount of the final loan.

Being aware of these costs and knowing that there are possible ways to negotiate these terms, are ways to insure the success of the purchase of your new home. Knowledge is power!