Want to ensure your real estate closing goes through smoothly?
Check out these quick tips for avoiding last minute glitches in the process…
You’ll need a valid government issued ID to close your loan and home purchase or refinance. Check it early, and make sure it doesn’t need to be renewed.
If you have a HOA or condo association they will likely have to approve a sale, and the association and property will need to be approved by the lender. Unfortunately, these approvals can take time. Make sure you apply early, pay any fees required, and stay on top of the process. You’ll also want to check their requirements before applying so you are confident you will be approved.
One item which may not show up until the appraisal review process at your lender is property size issues. While some are trying to make tiny homes and micro lofts fashionable, lenders can have minimum square footage requirements, and expect size to be comparable to other recent sales in the area. Check these requirements upfront, so they don’t surprise you later.
Repairs & Condition
Most cosmetic features aren’t an issue for most lenders. Needing some fresh paint or new carpet really doesn’t impact the value much. Structural and functional issues can be quite different. These include; roof leaks, foundation issues, and pest infestations.
Views & Location
Lenders expect residential homes to be in solid residential communities. Being on the edge of a commercial or industrial property zone, or being in a mixed use community can impact how a lender evaluates a property. If you are buying a property from out of the area, make sure you check Google maps or have a local contact go out and shoot enough video for you to have a clear understanding of the property, and its location.
Changes in Financial Circumstances
Know that lenders and your title company and insurers are bound to recheck the property and transaction right before closing. If there has been a new storm, new liens put on the property, or changes in credit or employment, that could be a problem. Don’t apply for new credit, or take out new loans during the process. Don’t quit your job.
Everyone wants a smooth real estate closing. Those who have had bad experiences in the past feat last minute hiccups. Watch out for the above items, and keep yours on track for success.