The worst case scenario that looms large in the minds of buyers, refinancers and sellers alike is that they’ll get to the close of escrow and some big glitch will arise, coming between you and your home – or your cash. Trulia’s Tara-Nicholle Nelsen has shared with us some ways to help prevent this from happening.
4 things you need to know to help you avoid getting a nasty surprise at the closing table:
Read my lips: no new bills (or other financial blips).
New accounts can certainly show up on your credit report in that time frame, endangering the deal and generating a surprise “no deal” from your lender just when you thought you’d be getting a set of closing docs to sign. If you have any large deposits come in just before or during escrow, be prepared to both explain them and document their source.
Make full disclosure when you first apply for your mortgage or short sale.
To avoid last minute surprises, be 100 percent honest with your real estate and mortgage agents at the beginning of your homebuying (or selling) process about any and every area of your life that corresponds to a mortgage or short sale application question, even before you complete the application – there’s almost no such thing as an overshare at that stage.
Watch the calendar closely.
To avoid getting to closing and realizing that you have to come up with an extra few weeks’ worth of prepaid mortgage interest because your closing date changed, make sure your real estate and mortgage brokers are in close communication, and ask them to keep you apprised of how any closing date changes will impact the size of the check you’ll have to write to close the deal.
Obtain and review your closing documents in advance.
Get these documents in advance and check on line items like the interest rate and monthly payment in the comfort of your own home or office, ask questions of your representatives and initiate any corrections that need to be made without disrupting the plans for signing and closing.
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