So you've found your ideal dream home and have had an offer accepted. Congratulations! You're one step closer to owning your first home. However, in the time between the acceptance of your offer to your closing date, there are some important things you'll want to do to ensure the smoothest closing process possible. Otherwise, you could end up running into trouble with finalizing your home financing or even affording your mortgage down the road.
Schedule a Home Inspection
A professional home inspector will take a thorough look at the home's major components, such as plumbing, HVAC, electrical, and roofing to ensure that the home is in good overall condition. This can be a great way to be made aware of potential maintenance issues that could cost you down the road. You should ideally schedule an inspection before finalizing a sale price (since the results of an inspection can provide you with negotiation leverage). However, you can always write into your contract after making an offer that you have the right to back out of the offer if any major problems are found during the inspection.
Assess Your Credit Report
Even if you've been pre-approved for a mortgage, it's important to take a look at your credit report. After all, your lender will need to do this before your mortgage is able to be finalized. Specifically, be on the lookout for any errors on your credit report and dispute them before your closing date. To maintain your credit score, avoid making any major purchases (such as financing furniture for your new home) until after closing.
Run Through Your HUD-1 Statement
A few days before your closing date, you should receive what's known as a HUD-1 statement; this should provide you with a detailed breakdown of your closing expenses. It's important to take a detailed look at this statement to ensure you know what will be due at closing and what your monthly mortgage payments after that point will be. You don't want any surprises when it comes time to finalize your home purchase.
Work With a Real Estate Attorney
Last but not least, always work with a real estate attorney, like Byron Huffman, PC, when buying a home and be sure to have him or her present at your closing. This way, you can have any questions answered by a professional before you sign any paperwork. As a result, you can buy your home with confidence and added peace of mind.
As you can see, there's a lot you need to do before you close on your home. Be sure to keep these tips in mind as you prepare to become a homeowner, and good luck!