The process of buying a house can feel like a never-ending to-do list for home buyers. If it took a long time to find house that you wanted, it can feel like you should be almost done. But, the journey is just really beginning for home buyers.
There are six key things that home buyers need to do before you move into your house. To help you get started, here is a guide to tell you exactly what you need to do before you get to the closing table and move into your new home:
Before you buy a house, you want to make sure that the title to the home is clear and there are no liens on it. This is part of the closing process and your mortgage lender will assist you along the way.
To start, a title search will be completed. This will confirm that the seller does not have any hidden liens or liens that they were unaware of. If there was previous work conducted by a contractor sometimes liens are left on the house by accident. Before you take ownership of the house you want to know that title is clear.
If there is a lien on the house once you become the owner, you are responsible for paying the lien.
Most real estate offers come with a list of contingencies. This could include the home inspection contingency, appraisal contingency, and financing contingency.
Before you are able to close on the house you need to make sure all of these contingencies are met. This protects you from committing to a house that you are not able to purchase in the end.
Even if you were pre-approved for a mortgage you still have to go through the approval process once your offer has been accepted. Your lender will want to check your credit score again and verify your financial information to assure that you are still a safe bet to loan money, too.
The underwriting process for the loan can take weeks to complete. The underwriters are working to verify the information that you provided the lender. Once this process is complete your loan will be approved.
Before you close on your mortgage home buyers will be provided the closing disclosure at least 24 hours in advance. This disclosure includes all the information about the terms of your loan including what your mortgage payment will be and any additional cost.
You want to verify that the information matches that provided by to you by your lender when discussing your loan. If you have any questions, your lender can answer them for you.
Within 24 hours of your closing you are provided with one final walk-through of the home that you are buying. This is your chance to look at the house and make sure that everything is in the condition that it should be in. This also gives you a chance to verify if the seller has completed any of the work after the inspection that they needed to complete.
If there are problems during this time you need to bring them to your real estate agent’s attention. This is to assure that the house will be in the condition that you were anticipating it to be in when you made the original offer.
When you get to the closing table there are some documents that you will need to have with you. This includes a copy of your purchase agreement with the seller, your home inspection report, any paperwork that your lender has required of you, a photo ID issued by the government, and proof of homeowner’s insurance. With these items in place you will be able to close on the loan to your house.
While the process seems long and daunting at times, it will be worth it. If home buyers stick to the guide and complete the necessary tasks, before you know it you will be the proud owner of a new home.