Once you find your dream home, your main aim will be to complete the loan process and go for the mortgage closing. Normally, a closing day can be defined as a day where the seller and the buyer sign on the dotted lines. They exchange keys and the check. But there are a lot more things included in the closing process. So, if you don't prepare in advance, your home loan closing process can be disastrous.
Here are 5 things which you should keep in mind while going through the closing process:
1. Review loan documents: If you want to ensure that your closing process should go smoothly, you should review all your loan documents in advance. This will help you know the terms and conditions of the loan in details and you will be able to avoid any kind of shocking surprises later on. If don't have the time to review the loan docs on time, then you can contact a real estate attorney and he will review the documents for you. You should make sure that you have reviewed the closing settlement statement or the HUD-1 form and compared it with the GFE.
2. Clarify your doubts: You should ask questions in order to clarify your doubts. This will help you know what you can expect at the time of closing. It is very important to clarify whether or not you have submitted all the required documents that will be needed at the time of closing. If you have missed out on anything, then you can submit it and rectify your mistakes. This will make your closing process smoother.
3. Check out for mistakes: To err is human. But don't allow these errors to jeopardize your closing process. Your loan officer may have said something which might be wrong and you may have followed that which could result into a cancellation of the loan. So, make sure that you clarify with the loan officer that you have the correct information.
4. Unexpected things can happen: Once you reach the closing table, you will be informed that all you need is to sign the deal. However, before you sign on the dotted lines, you should double check everything. There can be typo errors which can make things difficult for you in the long run. You should specially check for the interest rates, loan amount, etc. wherein the typo errors can normally happen. A simple typo error will lead you to send back the documents to the lender so that it could be redone. Thus, you should be prepared for such unexpected delays. Thus, you should keep your closing on an earlier date rather than keeping it on the last available closing date.
5. Take a off on the closing date: Though a home loan closing will take 30 minutes of your time, you may have to sit back for hours. May be the loan officer will be busy with other borrowers who came before you or there may be errors in your loan docs. So, trying to close your mortgage during the lunch hour can be a very bad idea. You may end up being hungry, late as well as frustrated.