Tips For Avoiding Closing Day Disasters
Closing day on your new home is supposed to be a happy occasion. Unfortunately, last minute surprises from the seller or your realtor could bring your happiness to an end. Although it is impossible to predict every surprise that could pop up, there are some that occur more often than not. To help you prepare for possible problems on closing day, here are some of those surprises and what you can do to handle them.
The Final Inspection Is a Disaster
The last time you had a chance to walk through the home was likely before or after the home inspection was completed. Ideally, the home should still be in the same condition for the final walkthrough, but there is a possibility it is not. Sometimes the changes are the fault of the seller. In other instances, Mother Nature could be to blame.
Regardless of who is at fault for the changes to the home, you have to decide how to handle the problem. If the issue is minor, letting it slide might be the best course of action. However, more serious damage requires a discussion with the seller. You can ask the seller to take care of the repairs or to place the funds for the repairs in escrow.
The Loan Documents Contain Errors
The moment you are sitting across from the seller and ready to sign the purchase agreement for the home is the worst time to discover errors in your loan documents. Errors must be corrected to ensure the loan agreement is valid. Fortunately for you, this issue is completely avoidable.
Legally, your lender is required to provide you with copies of your loan documents a few days before the closing. When you receive the documents, review them for errors. If you spot one, contact your loan officer immediately to request a correction. The officer can make the corrections and provide the forms to you for review.
While talking to your loan officer, find out if there are any additional steps you need to take to avoid problems with your loan. The officer will reassess your application a day or two before closing to ensure you are still eligible for the loan. If you provide the additional documentation needed now, you can be sure closing is not delayed.
Your real estate agent will help you identify other ways you can keep surprises to a minimal on closing day and find a solution for each potential problem.