6 Things to Do Before Closing on a Home
Congratulations! The home seller has accepted your offer, and all the diligent effort you’ve invested in finding your dream home is finally paying off. However, the journey isn’t over just yet. Until you hold the keys to your new abode after the closing, your ownership isn’t fully secured.
Purchasing an existing home introduces uncertainties that could arise between offer acceptance and closing, potentially jeopardizing the deal. To safeguard your investment, it’s imperative to complete the following six crucial tasks before closing.
#1: Maintain Your Qualification Status
While pre-qualifying for a mortgage is a significant step, approval isn’t guaranteed. Credit fluctuations between pre-qualification and closing could affect your loan status. To ensure loan approval, consistently manage your credit, refrain from opening new credit lines, avoid maxing out existing credit, and promptly meet credit payment deadlines.
#2: Exercise Caution When Handling Funds
Lenders view fund withdrawals or transfers before closing with caution, as they could imply financial instability. If such transactions are necessary, maintain detailed records and provide a written explanation to satisfy the lender’s concerns.
#3: Secure a Homeowner’s Policy
Before the closing day, every lender will mandate an active homeowner’s policy. Typically, your coverage will be verified a day before closing, and in some instances, upfront payment of the first year’s premiums might be required through an escrow account setup.
#4: Document Large Bank Deposits
Sizeable deposits to your bank account may not harm your loan prospects, but transparency is key. Inform your lender about the deposit and furnish relevant documents to substantiate its source.
#5: Await the HUD-1 Statement Before Obtaining a Cashier’s Check
While your lender will provide an estimate of closing costs, it’s prudent to await the HUD-1 statement for precise figures. Only then should you acquire a cashier’s check from the bank for closing costs, as the statement itemizes the final fees due at closing.
#6: Obtain a Cashier’s Check for Closing Costs
Closing costs must be settled via a cashier’s check, payable to the title or escrow company overseeing the closing process. Ensure the check’s amount matches your closing costs, and obtain it after receiving the HUD-1 statement.
Trinity’s Custom Homes: Crafting Your Perfect Abode
Opting for a brand-new custom home significantly reduces the risks associated with last-minute seller backing. As the aforementioned tasks highlight, the pre-closing process demands meticulous attention. However, when partnering with Trinity Custom Homes, the worries are halved. With our expert builders across five southeastern states, we’re equipped to bring your vision to life.
Initiate your journey today by calling Trinity Custom Homes at 888-818-0278 to schedule a consultation with our seasoned custom home builders. Regardless of your location, our dedicated team is poised to guide you through the process. When you’re prepared to embark on this exciting endeavor, reach out, and let us showcase our capabilities.
