So, you’ve found that dream house you were looking for and are ready to close on the house. Is it time to sit back and relax yet? Not at all! There are still closing contingencies that need to be taken care of, for example –
Closing On A House
1. Home Inspection – The buyers have the right to get the home inspected by a professional before closing on the deal. And It shouldn’t be skimped on. An inspector can point out issues, defects (major and minor), and safety concerns that may be invisible to a normal person. Looking to hire a reliable professional? visit home inspector in Gwinnett.
2. Appraisal – Your mortgage lender will likely require an appraisal of the property you’re hoping to buy, so as not to loan you more money than the house is worth. Factor in the fee for appraisal in closing costs.
3. Mortgage Approval – Your loan application is probably being processed by the lender at this point and getting approval will involve an underwriter who’ll check the credit scores, appraisal, and whether anything on your financial portfolio has changed since your pre-approval.
4. Homeowners Insurance – It covers the cost to repair or rebuild your house or the items in your house in case of damage to property of any kind or protect you against liability coverage against accidents that may occur in or own your house. Many lenders often require the home owner’s insurance and usually include it in your monthly payment. Look for a deal that provides you with the best coverage for minimal cost.
5. Title Insurance – Your lender may or may not ask for title insurance. However, purchasing one is generally a good idea. In the unlikely case of a dispute regarding ownership of the property, it will come in handy to prove that the property is owned by you.
6. Final Walk-through – Usually scheduled by the agent a day before the closing, it isn’t just a formality. You have the opportunity to see if the house is in the condition agreed upon by both the parties, like –
- Make sure that the repairs that were to be made by the sellers have been made.
- Check whether the HVAC (heating, ventilation, air conditioning) devices are working.
- See whether the appliances are fully functional.
- Make sure the faucets, outlets, fixtures, and plumbing are working properly.
It’s always a good idea to take your time with the last step of the whole process – ‘signing the dotted lines’. Go through the entire agreement and hire an attorney or an agent if you need, to help you through the process and the legal jargon to see if something is amiss.