You made it through one of the most stressful processes imaginable. While it is true that you can finally take a big breath and relax now that your loan has been “clear to close” , you need to make sure that you cross the finish line. Here are five tips that you need to follow in order to assure you have a successful closing day:
1. Don’t Take On New Debt
Being clear to close is fantastic, but it will not happen if you start to take on new debt prior to closing on your new home. It is easy to get confused and think it is okay to take out a new credit card to finance your new couch or bed set. DO NOT DO IT. Your lender will run your credit the day of the closing to assure no new debt has been taken out. You need to make sure that you do not take out any new debt until after you close. Even then be careful about taking on new debt unless you are sure you have the ability to pay it off.
2. Set Your Closing Date
Make sure that you communicate with your attorney and your lender to confirm that your closing date is set and confirmed. It is important to be aware of where to be and when you need to be there. Closings take place during business hours, 9-4 p.m. The closing will take 2-3 hours so be sure to give yourself plenty of time.
3.Bring Your Identification To Closing
While you may feel like you have given away your entire life’s knowledge out to your lender to get yourself “clear to close”, you will still need to provide photo identification at the closing. You cannot rely on your lender to verify your identity as they will likely not be at your closing.
4. Bring Your Down Payment Funds To Closing
Make sure that you have your funds together in the form of a certified check. The title company that will be attending your closing will not accept a personal check. How much money do you need? Make sure to verify the amount of closing funds you will need to bring with your lender. Remember, your lender will be the person to provide you with these final numbers. Not your attorney. Save yourself a trip to the bank on the day of closing and verify these amounts. In addition the certified check will need to be made out to your title company and not to yourself. In the past you were able to sign the check over to the title company, but thanks to online deposits, this is no longer possible.
5. Stretch Your Wrist
Okay, you may think that I am joking but you will be signing a boatload of documents at your closing. Make sure that you are aware of what it is you are signing. Pay attention and bring your closing disclosure with you to verify the loan terms and amounts match with what you are paying at the closing. Today’s lending environment doesn’t allow for last second changes so you want to protect yourself to assure that you are receiving the previously disclosed loan rates, and closing costs.