Mortgage Resources

3 Golden Rules to Make Sure You Close on Time for Your Colorado Home

Closing a home buying transaction is the final stage in purchasing a home, but things can happen the closer you get to your closing date to push it back even further.   This can cause frustrations, disappointments and even financial pitfalls if the homebuyer doesn’t have all of his ducks lined up in a row. Closing on a house is not simply about signatures, it also involves paying inspection fees, ensuring all documents are accounted for and getting final approval from the bank. In order to ensure that no unforeseen issues arise that may push your closing date back, buyers should keep these three golden rules to make sure that they can close on time for their Colorado home purchase.

Bank Approval                                                               

There is a difference between a pre-qualified buyer and one who has an approved loan. Bank preapproval is basically the bank saying, “we have looked at all of the documents, we have made our decision, we will loan you the money for this house.”  While approvals can be pulled at the last moment, it is rare.  This is one reason that lenders will tell potential buyers who are in the process of buying a home not to change jobs or make any big purchases until after their closing.  Both of the these items could change your approval rating with the lender.

Do Advance Reading

At closing there are literally dozens upon dozens of documents that will need to be read and signed.   Ask your lender for copies of all of these documents ahead of time (the documents are generally ready three days ahead of time) so that you are not feeling rushed while you read through them.  At a closing, it is easy to rush through and only skim documents, but this is your last chance to make sure that everything is correct.

Don’t Forget to Stop at the Bank

One of the things that buyers most often forget to bring to a closing is a certified check or money order.  Most places will not allow you to pay your closing fees and down payment (deposits, fees and escrow monies) with a personal check and most potential buyers are so excited to get to the closing and obtain their new home keys that they forget this major step in the process. Closings happen every day of the week but it is important to anticipate and avoid the possibility of human error as you read through your closing documents.  Bring a trusted real estate agent or an attorney with you to closing.  They can help be your second pair of eyes as you look through and sign the documents that you need to before the house is officially yours — the documents that you hopefully looked at just 72 hours earlier. Once you’ve closed on your new home, enjoy it!  You have just made it through one of the most stressful but most rewarding tasks that you will enjoy for many years to come!