You’ve toured homes, asked the questions, and finally decided to make, quite possibly the most expensive purchase of your life, a new home. You’ve trained, practiced, and even broken a sweat and finally, the finish line is within reach. Nick Moonen, Owner/Examiner at Carver County Abstract & Title Co. shares all you need to know, gather and do for a seamless and uneventful closing that will help you finish your race strong.
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Interview and hire a professional agent and loan officer you can trust. Make sure you feel they care about what’s best for you.
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Discuss with your lender what you can afford and how much of a payment you feel comfortable committing to.
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Get estimates to determine the Title Company you will be closing with. Look beyond the pricing and see who provides professional and responsive answers to your questions and concerns.
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Ask questions to make sure you understand the documents (Purchase Agreement, Loan documents, etc.). You may not understand every fine detail, but you should understand the overall process and what you are committing to.
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Gather all the documents you need for your lender ahead of time. Typically they may need copies of tax returns, bank statements, W-2s, or other pay stubs, so make sure you are organized with those documents for when you need them.
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Review the Title Commitment from your title company. This will help you understand the encumbrances that come with the property such as Easements, neighborhood Declarations, Associations, etc. These encumbrances stay with the property and can affect your ownership down the road.
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Don’t make major purchases (furniture, appliances, flooring, etc.) prior to your closing. This could cause problems with your qualifications for your Mortgage. Contact your lender for more information.
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Purchase an Owner’s Title Policy. This one-time charge, which is typically much less than 1% of your purchase price, can protect your homeownership for years to come. The policy can protect you from clouds on title such as prior liens, mortgages, or other interests that were not cleared appropriately in the chain of title. This policy could also help defend your title in the case that someone tries to stake a claim on your property.
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Ask questions of the seller or their agent ahead of closing for specifics on the property including maintenance and utilities. This valuable information can help save time and money in the long run.