You’ve found your dream home, and you’ve been approved for your loan. But before you get the keys, you have to make it through your mortgage closing day. Unfortunately, there are a lot of things that can go wrong. Closing day is the day the buyer and seller sign all the final documents to officially seal the deal and ownership of the property is transferred. It’s also the last opportunity for the buyer to make any final changes to the transaction.
To prevent last-minute surprises and delays, our Bank Iowa Mortgage experts have gathered a few tips and tricks to keep you on track for a successful mortgage closing day.
1. Don’t make any significant financial changes. Here’s a list of basic don’ts… don’t close any credit accounts, don’t open or apply to any new credit accounts. Don’t change jobs. Don’t sell anything that would result in a large deposit. Any of these activities could throw a major wrench into your mortgage closing day.
2. Final home walk through. Buyers should do a final walk-through of the property prior to closing day. The goal is to verify that all agreed-upon repairs were made and that the house is in the order you expected. Most home-sale contracts allow you to a walk-through inspection of the property 24 hours before closing.
3. Review the closing disclosure. The closing disclosure outlines the terms of the loan with the final closing costs including any outstanding charges or fees. The lender will send this form at least three days prior to closing. Once the borrower signs the closing disclosure, there’s a three-day waiting period before they can sign the mortgage loan documents. If you miss this step, your closing day could be delayed.
4. Be prepared. Arrive early with your required form(s) of identification, proof of homeowner’s insurance, a copy of the purchase contract and your checkbook. Be sure to ask what type of ID you will need prior to the day of as some companies require two forms. Also make sure to wire the funds you need to pay your portion of the closing fees, etc. to the title company present or be able to present a check at closing.
Worth it in the end.
The entire process might seem like a blur of papers and pens, but once you’ve reviewed and signed all closing documents, you will officially be a new homeowner!
“When a Bank Iowa mortgage customer leaves with their new set of house keys — well, that’s a feeling that never gets old,” said Todd Smith, Bank Iowa Vice President. “Being able to assist in such a monumental life milestone is incredibly humbling, and it’s our top priority to make it a positive experience so you want to come back and work with us the next time around.”