There’s so much to look forward to when you own a new home. It’s like starting over with a house that’s move-in ready, or bigger, or in a new area, or that you can redo from the ground up, or that’s smaller for a simpler way of life.
But the process of getting to where you walk in the front door as the owner for the first time can honestly be overwhelming and stressful.
So as closing day draws near, it’s important to avoid some common headaches that can make it a little more difficult to finally own the house of your dreams.
Here’s our list of what not to do:
1. Losing Track of Your Closing Timeline
Once a homeowner accepts your offer on their property, there’s a timeline of tasks that need to be completed before the house can officially and successfully be yours on closing day.
A good real estate agent will walk you through the process and help you stay current on what needs to be done, but it’s up to you to contact the right people and sign and submit documentation when it’s due.
Losing track of your closing timeline could be detrimental to the transfer of ownership you’re looking forward to. So it’s important to keep an eye on your email, make follow up phone calls as needed, and keep in contact with your agent until closing day.
2. Skimming the Closing Documents
Yes, there is a lot of paperwork and documents to read. And while most people know they should read carefully before signing, the truth is that many just don’t.
But skimming the closing documents could cause a headache later. By reading carefully, you’ll be able to ask questions while the people who can help you are there to answer them. You might also catch a mistake, like a misspelled name or address that could lead to serious complications later.
So while it might take more time on closing day, make sure to look carefully over the closing documents before signing.
3. Making Big Purchases During Escrow
Unless you’re one of the lucky people who can purchase a home with cash, you’ll need to work with a mortgage company or lender to finance your new house.
Once you start the process, they’ll pre-approve you for a certain amount of money based on your accounts. And unfortunately, if you make a large purchase, your debt-to-income ratio could change before closing day and delay or impede transfer of ownership.
Avoid this headache by using your money conservatively until closing. Wait until the home is officially in your name before purchasing new furniture or a new car, for example.
4. Skipping the Final Walk Through
You have the opportunity before closing to walk through your future home one final time. If certain issues arise, you would be within your rights to walk out on the sale at the last minute.
By participating in the final walkthrough, you’ll be able to catch any repairs the current owner agreed to make but didn’t, or notice if the house isn’t in the condition you agreed to. You and your real estate agent will visit the home as close to closing day as possible, and check for new damage and the working order of systems and appliances.
Avoid the headache of owning your home, and then realizing that the previous owner didn’t follow up on his contractual obligations.
5. Passing on Title Insurance
Along with your real estate agent, the title company is an important part of a successful transfer of ownership on closing day. They ensure that the home you want to purchase has a clear title that can pass on to you.
The lender who is issuing the mortgage on your loan will require that you have lender’s title insurance, which protects them against any issues that might later arise with the title.
However, no one officially requires that you have owner’s title insurance, even though it’s critical to protecting your investment. A long lost heir, fraud, or undiscovered lien are rare but would jeopardize the title to your home.
But with title insurance with a company like New Door, you can have peace of mind that the title to your house is clear, and that we’ll provide you with the coverage necessary to protect your ownership and investment in your home.
Visit New Door for information on the services we offer that could help you avoid headaches on closing day.