4 Tips For a Smooth Closing – Part I

Most buyers think of a real estate closing as a stressful process; sometimes, it can be -but, it doesn’t have to be! Here are a few tips to help things go a little more smoothly for your next real estate purchase:

1. GET IN TOUCH, ASK QUESTIONS
   • There are a number of professionals working on your transaction from contract to closing – from your realtor, to your lender, to your closing attorney. You should feel comfortable reaching out to any one of them at any point during your closing to ask questions. Do not feel like you are “bothering” them, this is our job! The first time you talk to your closing attorney does not have to be in the conference room on the day of closing.   Call your closing attorney early on in the process if you have questions.  Have him or her go over your settlement statement (now called a Closing Disclosure) with you prior to closing, so that you are sure you understand  everything before you get to the closing table.  Your closing attorney is often also your title agent, so if you have title questions ( “what is title insurance” or “why do I need an owner’s title insurance policy,” or “how much does title insurance cost”) – call your attorney and ask! You should be able to walk into closing with most of, if not all of, your questions already answered, so that you feel comfortable closing the deal. It can be a stressful process – but it doesn’t have to be!
2. GET A COPY OF YOUR APPRAISAL – AND READ IT
   • Lenders almost always require an appraisal during the loan approval process. And, the appraisal is usually a contingency in your contract. Buyers do not always actually read or look at the appraisal; sometimes they trust their realtors and/or lenders to look at it, and let them know if anything is amiss.  If the appraisal comes in lower than the purchase price you’ve agreed to, it can affect your loan. Your lender will use the value from the appraisal to determine your loan-to-value ratio; an appraised value that is less than the purchase price could result in your having to increase the amount of your down payment, or having to obtain private mortgage insurance. And, an appraised value that is less than the purchase price could open up room for re-negotiating the purchase price.

Stay tuned for PART II….