Silicon Beach Home Buyers: 5 Things to Know As You Wait for Closing Day
The seller accepted your offer, and now you've just got to sign on the dotted line. Right?
For some home buyers in Silicon Beach, the closing day for a real estate purchase is as formal and complicated as the transaction itself. For others, it’s just a blip on the radar. Either way, there are some important things to keep in mind as you make your way to homeownership in Silicon Beach.
1. Your mortgage rate could expire
Mortgage interest rates can fluctuate daily, and the rate your bank quoted isn’t good forever. Instead, a bank will “lock-in” your interest rate for 45, 60 or any number of days. Once that lock expires, you may have to pay a higher rate.
Any number of issues can come up: open permits, illegal renovations, or other types of roadblocks might require the loan process to stop until resolution.
Don’t wait until it’s too late, and don’t assume it’s a smooth journey to the closing table. Rate-lock expiration can throw an expensive wrench into the closing process. We can recommend a trusted mortgage professional who will ensure there are no surprises with your loan. Contact us!
2. The mortgage process isn’t over yet
Some buyers think once they’ve completed the application and submitted paperwork, their loan is approved and ready to go. Not so fast. Lenders will verify income, assets or credit all the way up until the very last minute. Don’t make any major changes to your finances until the closing.
That means don’t apply for a new credit card, finance a new car, or take a new job without running it by your mortgage professional. The smallest (even seemingly insignificant) change to your finances can affect your ability to be approved for a loan.
3. And the house isn’t yours yet
We conduct a final walk-through with every transaction. Be sure to take advantage of it. Why? You don’t want to close on the home if systems aren’t working, the seller hasn’t made the necessary repairs, or the seller hasn’t moved out.
If things aren’t as they should be, you can postpone the closing until they are.
4. The actual closing is very low-key
Buyers sign their loan documents in the privacy of their home or office, and the seller may only need to meet a notary once. It’s seamless and straightforward, and happens in the background. Buyers wire their down payment, and sellers receive their funds electronically. The days preceding the closing can be tense as deadlines approach – it's our job to keep things running smoothly!
5. What can you do?
The easiest way to a smooth closing is to be on the lookout for red flags and do lots of research. Have a solid team (like us) on your side. We can refer you to necessary mortgage pros, title insurances, escrow offices, attorneys or inspectors.