Things Every Homebuyer Should Know Before Closing

Things Every Homebuyer Should Know Before Closing

Are you preparing to buy one of the Newtown homes for sale or have you already put a successful offer in and will soon be closing on a new home? Whether this is your first home purchase or your fifth, the process of buying a new place is always exciting. However, it can also be stressful if you’re not sure what’s involved in the closing process or you feel unprepared. Fortunately, with the help of an experienced Newtown Agent and the following information, you can put your anxieties aside and focus on the positive when it’s time to close on your next home.

Resolve any contingencies

If your offer contained contingencies, such as those based on selling your current home first, obtaining financing, or on the results of an appraisal or inspection, you must make sure they are squared away before you close. For example, if you included an appraisal contingency in your offer, an appraiser who specializes in Newtown homes for sale will determine the fair market value of the home. If the value comes in under the price in your offer, you will either have to cover the gap or, depending on how your contingency was written, you may be able to walk away from the deal and get your deposit back.

Ensure clear title

Those who buy Newtown homes for sale will “take title” to establish legal ownership of their new property. Before you can close, the mortgage lender will require a title search. To protect yourself from any legal claims to the property, you will need to buy title insurance. The average cost of a title insurance policy is $1,000.

During the title search, the title company will look for a variety of issues, such as liens for unpaid property taxes, disputes over wills between prior owners, liens from contractors who were not paid, fraudulent claims for the property, or any typos or other mistakes on courthouse documents.

Get final mortgage approval

Even though you were already preapproved for a mortgage before you started looking at Newtown homes for sale, you will still need to get final approval before you can close. Every home loan must go through the underwriting process to determine whether you’ve represented your finances and other details on the loan application accurately. The underwriter, who works for your mortgage company, will review the home appraisal, make a final check on your credit score, and review your financial portfolio to ensure it has not changed since you applied for a loan. It’s crucial that you don’t do anything to negatively impact your portfolio or credit score, such as applying for a credit card or loan or making a large purchase, such as a vehicle.

Review your settlement statement

Closing disclosures on Newtown homes for sale are also known as the HUD-1 settlement statement. It outlines the loan’s terms as well as what your exact mortgage payments will be and how much you will pay in closing costs. You can pay your closing costs, which are typically 2-7% of the home’s selling price, in one of three ways: paying them upfront, rolling them into your loan, or by having the lender cover the closing costs, an option that may increase your mortgage interest rate.

When reviewing your disclosure document, keep an eye out for any discrepancies between the loan estimate you received from your lender when you initially obtained the loan and the final disclosure. If you note any differences or have any questions, ask your lender for clarification.

Do a final walk-through

In the 24 hours before you close, you will get the opportunity to do a final walk-through of your new home with your Newtown Agent. Bring your final contract, a phone you can use to take pictures, your inspection summary, and a notepad to the walk-through, and be ready to check for the following:

  • Previous owner has vacated the home and taken all their possessions.
  • Final repairs have been completed.
  • All items that were included in the sale are present.
  • All window latches and door locks are in working order.
  • Bathrooms and the kitchen are free of mold, water damage, and standing water.
  • All appliances are in working order.
  • Heating and air conditioning are operational.
  • All lights work.
  • Landscaping is in the same condition it was in when the property was purchased. 
  • No signs of pests.

Bring documents to the closing

Once everything else has been completed and approved, it’s time to sign the final documents so you can take possession of your new home. Buyers of Newtown homes for sale will need to bring the following to closing:

  • A copy of your contract with the seller.
  • Proof of your homeowners’ insurance policy on the property.
  • Any home inspection reports.
  • Your government-issued ID, such as a driver’s license.
  • Documents your bank used to approve your loan.

Because you will have to sign a lot of papers at closing, leave yourself plenty of time so you don’t feel rushed. From start to finish, the closing process takes around 30-45 days. You can facilitate the process by being organized and having everything you need on hand. If you have questions at any time during the closing process, you can ask your Newtown real estate agent.

Haven’t yet settled on one of the Newtown homes for sale you want to buy? Reach out to trusted local REALTORS® Mark + Tina for expert guidance and advice on which homes will best fit your needs and for assistance making an offer the seller will accept. With their years of experience and attention to detail, Mark + Tina know what it takes to help you buy the home of your dreams.




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