The closing is the last part of the homebuying process, so you want everything to go smoothly. However, you could unknowingly make errors that could jeopardize the process. Here are a few common mistakes you’ll want to avoid.
Not Reading All the Paperwork
There’s certainly a lot of paperwork that goes into the closing process, and it can be quite overwhelming. It can be tempting for some buyers to skim through some of these documents to save time. However, if you don’t thoroughly read these documents, you could miss something important that could come back to bite you later on. Start reading these documents several days before closing. This way, if you have any questions or concerns, you will have time to bring them up.
Using Different Versions of Your Names in Documents
When filling out closing paperwork, it is important to be consistent with your name. For example, if you just got married and have not updated your driver’s license with the name change, you may not be able to close on your house. The name on your driver’s license must match the name on your paperwork exactly.
Making Large Purchases During the Escrow Period
If you have just purchased a home, you may be tempted to make other large purchases, like furniture and televisions. However, if you put these items on credit, your credit rating could take a hit. As a result, you might not be able to close on your home. It may be best to avoid large purchases until after you’ve closed on your home.
Switching jobs can help you grow your career. Unfortunately, it can also hurt your mortgage approval. Lenders typically want to see at least two years of consecutive steady employment. If you were pre-approved for a mortgage loan based on a certain job, changing jobs suddenly may delay the closing process.
Not Asking Enough Questions
You should never feel scared to ask questions during closing. If you do not understand a term in one of the documents, do not hesitate to speak up. Your real estate agent and title company are there to help you and address your concerns.
If you have additional questions about the closing process, you should consult a reputable title company, today!