4 Surprises for Closing on Your New Home
Written by Alyssa Howard, Moveboxer.com
As you prepare to close on your new house, you’re probably getting pretty excited at the prospect of moving into the new place and finally making it a home. But don’t rush in without knowing what to expect from the closing process. Although you may think that you’re in the clear after you’ve made an offer on the house and it’s been accepted, there are still some important elements of a closing that you need to consider.
So, you’ve definitely heard this term before, but it’s important to know that the amount that you’re required to pay for the down payment can vary based on a variety of factors including your employment status, income, credit history and geographic location. The down payment could be anything from 5 to 25 percent of the house’s value.
Home Inspection and Other Closing Costs
If you decide to go ahead with a home inspection, you’ll nee to budget for an additional fee that accompanies this walk-through. Additionally, remember to take other closing costs into account. These differ widely from case to case, and there is usually a lot of room to negotiate the portion that you will pay. Make sure to address this issue with your loan officer or attorney before closing day.
One of the nastiest surprises on closing day is that people can – and do – screw up sometimes. For that reason, you’ll want to read through the fine print on everything you sign – before you sign it. Even if you have the HUD-1 form in hand and feel confident that everything is correct, check it again. By taking your time and reading through each document, the closing may take more time, but it will also save a huge hassle in the long run if there is a mistake hiding in the document.
Also, this means that you should set aside at least a half-day to get the closing done. There’s no point in rushing through it if it won’t be done right.
Take Note of the Timing
Lastly, you’ll want to make sure you schedule the closing for a day that works, keeping in mind that you need to close on the house before any interest rate locks ends and at a time that makes sense for your current living situation. For example, don’t waste money by closing on a house before your current lease runs out.