Here are five great tips for a smooth and stress-free real estate closing:
You have read the news, and have heard some horror stories from your friends, and now it’s your turn to close on your new home. Follow these five tips and enjoy your special day!
1. Don’t close at the end of the month. Buyers try to close at the end of the month to avoid paying some days of taxes, interest, and insurance. Most mortgage companies are over burdened and understaffed, and with having to prepare numerous closing packages all the same day, this causes delays on all ends… the closing attorney’s, the mortgage company, and yours. Closing a couple of days before the end of the month will be well worth the extra expense.
2. If you are hoping to take possession on the same day as you close, then close on a Thursday. This way, if money doesn’t get transferred to the seller until Friday, you can still move in before the weekend.
3. Close in the morning. The later you close, the greater the chance the money and the clear to close from the lender will not make it until the next business day. This is especially true if you are selling a home then buying one on the same day.
4. Get a Power Of Attorney (POA). If you are your significant other are on different schedules, then have one person close. On the buying side the most important thing to know is how much money you need to bring, that the closing documents have the correct interest rate shown, and what your monthly payments are. On the selling side it is just a few pieces of paper and your done. Unless everyone feels the need to be there, get a POA, especially if you are doing more than one transaction and want to start in the morning.
5. Wire your funds to close to the closing attorney’s office the day before the closing. Worst case scenario, if you don’t have your settlement statement before you close, by law, you have gotten a Good Faith Estimate from your lender showing your closing costs. This form tells you how to much to bring to closing. What is doesn’t tell you is what the transfer fees for subdivisions/condo associations are, and any other miscellaneous fees. Add a few hundred dollars to the Good Faith amount and wire it to the closing attorney’s office if they have not provided you with a preliminary HUD statement at least by noon time on the business day prior to closing. It is always better to have more than you need and a check cut back to you by the attorney than too little!
These tips, plus using a reputable closing company, will ensure you sail smoothly through your closing!
For more information on the Atlanta area real estate market, please email me at email@example.com or call me at 404.918.2500.
~ Ed Short, Atlanta REALTOR®