Looking for a home to call your own is an exciting time. You have a picture in your mind of what you’re looking for, and when you finally find the home that checks off all of those items on your wish list, you’re ready to move in. But before you can pick out new curtains and hire a mover, you’ll need to make it through the process of closing on your new home.
Closing on a home can be a complicated process, but our team of closing experts at Liberty Title in Minnesota can take you through it to make things easier. We’ll walk you through the process and answer all of your questions so you can focus on more important things like where to put your sofa. We’ve put together this guide to some of the top mistakes buyers should avoid during the closing process so you can get through the closing without a hitch.
1. Not Asking Enough Questions
One of the biggest mistakes first time home buyers make is to not ask the right questions during the closing process. Home buyers may not understand what’s involved with their closing fees or might have burning questions about their APR or refinancing down the road. You’ll also find yourself signing more paperwork than you’re likely to have ever seen, and you should understand what you’re signing.
If you don’t understand something during the closing process, make sure you speak up. After all, buying a home is most likely the biggest purchase you’ll ever make, and understanding the process helps you protect your investment.
2. Not Following Your Timeline
Too often, potential home buyers kill their sale by failure to follow their closing timeline. Once you accept your purchase agreement, you’ve likely agreed to have the home inspected by a certain date.
You’ll also need to submit your mortgage application so that you can lock in your mortgage rate and purchase your homeowner’s insurance policy. Failure to follow your timeline as it’s laid out could mean your mortgage falls through and you end up losing your earnest money.
3. Taking Out Additional Credit
While you’re getting ready to close on your home, you might be tempted to pick up a new furniture set that you know would look fantastic in your new living room. But if that requires you to take out an additional line of credit, it’s better to simply wait. Taking out additional credit during the closing process can impact your credit and threaten your mortgage approval. However, many homeowners find their credit gets a boost after they’ve recently purchased a home. If you hold off, you might find your credit line and APR for that new furniture set are well worth the wait.
Minnesota Title Closing Agents
The title closing process can seem a bit overwhelming if you’ve never done it before. But it’s important to understand the process and avoid making any mistakes that could jeopardize your ownership of a home. That’s why it’s important to have a strong title closing team behind you who can break down the closing process and help you avoid common closing mistakes.
If you’re getting ready to purchase a home, our team of title closing agents at Liberty Title in Minnesota has your back. Speak with our title insurance and closing agents at 763.494.0340, or contact us to learn how we can help you get into your new home.