Finally. You’ve found the perfect REI property. You’ve made an offer, a counter-offer, signed on the dotted line, the loan has been approved. Now you’re ready to close. All too often, this is the place where folks start to panic. Especially if they’re new to the REI game. But hang in there. These simple tips can make your closing much less painful and turn you into a real estate investment pro before you know it.
Don’t be afraid to ask questions. If you’ve never been to a closing, or at least not for many years, you may not know what to expect. Openly question the whys and wherefores of anything you’re uncertain about. Talk to your realtor, lender, or anyone else you think may have the answers.
Ask if everything is in order, if all papers are ready, what you’ll need to bring to the closing and more. This is no time to be shy. If you have a question, ask someone. Professionals who deal with closings regularly understand there are a lot of details. And they’ll understand if you’re unsure about what’s going on. Let them teach you the ropes by providing the answers you need now and that will help you in later closings as well.
Ask to review closing documents before the actual closing. By law, you have the right to review closing information 24 hours in advance. Be sure it matches the good-faith estimate you received at approval. It may take awhile to look over all the documents before closing, especially for a VA or other type loan where the number of forms is multiplied, but it will be worth it to know you’ve done all you could to ensure the closing goes more smoothly.
Expect the unexpected. Sadly, human error occurs and things go wrong. Verify that your loan officer has everything needed in hand before the day of closing. Be sure all your documentation is in order. If there’s a question or concern about any part of your paperwork, do your best to get it cleared up as soon as possible. But know that things happen.
Even the pros sometimes make mistakes. Typos occur. There are missing papers. Even something as simple as a required form that’s standard for one type of loan and gets overlooked for another type can hinder the process or bring it to a dead stop. It’s best to understand all of this at the outset to save undue stress at closing.
You’ll never be able to make closing totally stress-free or eliminate all the bumps. But you can remove some of the pain from the process and make it that much more enjoyable when you’ve got the keys in hand to that new piece of real estate you now own.
