Examine These 5 Things Before Closing on Your Dream Home

Buying your dream house can be exciting, but it is also essential to be cautious when closing the deal. You should check several things first to ensure that nothing can go wrong in the future. It is necessary, especially if you are buying a house for the first time. You need to find a real estate company that you can trust and one in this industry for a long time. In that way, if there is a problem, you can easily reach out to them. Here are some of the factors you should determine before buying your dream house.

Contingencies

The first thing that you need to determine is the contingencies. They are things that a buyer needs to do before making the final transaction. Some of the contingencies include home inspection contingency, where the buyer inspects the house professionally. The other one is appraisal contingency, where your mortgage lender hires a third party to evaluate the house in the fair market. The financing contingency is the last one where you have the right to cancel the deal in case the mortgage approval falls through.

Clearing the title

You need to ensure that you get the title deed of the house and start legal ownership. The local public land record is the ones that will confirm the ownership process. Your mortgage lender will need your title search, and you will also need to get title insurance. It will protect you if there is a legal claim to your home. At times, someone related to the seller may appear claiming ownership of the house, and the seller or the company doesn’t have the right to sell it. In such cases, the title insurance will protect you.

Mortgage approval

Getting your final mortgage approval should also be on your checklist before closing on your dream house. Your home loan company needs to check the underwriting process before you can close the deal. They will need to check whether you have provided the right information about your finances and not given any false information. The underwriting process takes place just before closing, and you do not do anything that can affect your credit score while in a contract.

Closing disclosure review

You need to check your closing disclosure if you are taking a loan to buy the house. This is also known as the HUD-1 settlement statement. It is a document that shows your loan terms and the exact mortgage payments, including the duration and the interest rate. You need to do a comparison between the loan estimated by your lender and your closing disclosure. If you find some differences, you will have time to ask for an explanation.

Final Walk-Through

The last thing that you need to do is a final walk-through. Your seller should give you a 24 hours walk-through of the house before closing the deal. At this time, you will do all the inspections of the house, including checking whether the previous homeowner has moved out of the house. You can find professionals to do inspections for you, and if you happen to be looking for your dream home in the San Diego County area, San Diego home inspections are the best for this work. You also need to check whether the house meets all the specifications listed on the contract, and in case you find something that needs renovation, you can tell your seller. Make sure it is fixed before you make the final payment. Ensure that the location and the security are ideal for you and your family. You should not get to the closing if you don’t like the location or feel insecure in that house. The real estate company can also show you another house that meets all the criteria you want.

In conclusion, make sure that you bring all the required documents to the closing. Some of the documents you should bring include home inspection reports, homeowner’s insurance proof, a copy of the seller’s contract, government IDs, and other bank loan papers. You will also need to have a lawyer to help you through the closing process and be ready to sign a ton of paperwork. After signing all the paperwork, the seller should give you the keys and full control of the house.