Monday, November 8, 2021 / by Raj Jaggi
1. Read paperwork in advance
Problems with documentation frequently cause last-minute delays in real estate closings. Because you're making the largest purchase of your life, it's vital that you fully comprehend your agreement. Read all of the documents and emails that are being sent to you carefully, and reread them if necessary. This will allow you plenty of time to take notes, ask questions, and clarify any misunderstandings ahead of time. This way, you won't be sifting through paperwork while everyone else is sitting and observing. While there's nothing wrong with taking your time on closing day, it may make you nervous, causing you to overlook important information when signing.
2. Check for your name throughout the documentation
At the time of closing, you will be required to show a government ID. If the name on your ID does not match the name on your papers, you will need to either get a new ID or redo the paperwork to match the name on the ID. If you just married or divorced and did not update your driver's license with your new name, this could be the case. You won't be able to close regardless. To avoid this confusion, double-check your name spelling on the form and make sure your state-issued ID has your current name on it. When closing a transaction, always give the lender, your real estate agent, and the title officer your complete legal name.
3. Keep relevant parties in the loop
The buyer and seller aren't the only ones involved in a real estate transaction; there's also the buyer's agent, the seller's agent, the lender, the title representative, and occasionally even a real estate attorney and accountant. It's critical that your agent and lender are informed of any changes that occur prior to closing, whether you've changed jobs, been furloughed, or reached a deal with the seller on a last-minute repair. Any of these transactions must be reflected in your documentation, which means you must keep these persons informed in order to protect yourself and avoid any delays at closing.
4. Verify banking information and payment requirements
Before transferring money via wire transfer or cashier's check, inquire about payment restrictions and double-check that all required information is correct. Aside from your down payment, which must be paid in full at closing, you must also fund other closing charges, which means a significant amount of money will be transferred. Check that the amount needed for closing fees is correct, in addition to ensuring that the information is correct. The title company agent or the attorney will tell you the precise amount that is needed and how it should be paid, such as by sending funds ahead of time.
Remember that if the attorney requests a wire transfer, such instructions will never be emailed. To avoid becoming a victim of wire fraud, be cautious and verify the wiring instructions with your attorney or real estate agent first. You want to be sure that the individual contacting you regarding a money transfer is legitimate and not a con artist.
5. Don't hesitate to ask questions before and during the closing
If there are any terminology or terms that you don't understand, please let us know. Just ask. When it comes to the convoluted world of real estate, no matter is too large or too little. It's easy to feel terrified and overwhelmed when buying a home, whether it's your first or third time. Call the title firm before the closing date and ask them to walk you through the transaction to alleviate some of your nervousness. Clarify any issues that have been bugging you or anything regarding the contract that is still unclear. Don't forget to prepare for the closing and ask your agent and title officer questions. All of these precautions will aid in the seamless operation of the procedure on closing day.