Buying a new home can be stressful, whether you are buying an existing property or building a new home from the ground up. Often, the stress of this process comes from the financial piece of the puzzle, as you work to get the right funding in place to pay for what is likely the biggest purchase of your life. This article will look at the closing process, so you can know what to expect as you move closer toward getting the keys to your new kingdom.
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An Appropriate Name
As you certainly know, the closing process is the last step along the path of securing your purchase and moving into your new house. While there are plenty of steps involved in a successful closing, you don’t need to go into this part of the purchase fearful – as long as you have all of your information lined up and you’ve checked all the boxes leading up to closing, there shouldn’t be any surprises.
It Takes a While
In the modern world, we are used to things happening quickly. When you want to look up something online, for instance, it takes just a matter of seconds – at the most – to find the information you need. The closing process is an exception to this standard of speed. You’ll likely spend at least a month working through closing from start to finish. This is one of the reasons some people find closing stressful – it takes a few weeks and there is a lot of downtime to think about what could go wrong. Try to avoid that kind of negative thinking and just work with your lender to keep things on track.
Some Key Components
The precise details of your closing process will depend on the type of purchase you are making, your financial situation, your lender, and many other factors. With that said, there are some key elements that will be involved in virtually every home closing.
Proof of income. If you are applying for a mortgage to build your new home, you’ll need to demonstrate proof of your earnings to qualify for that loan. As a traditional employee, a tax form that represents how much you made last year may be all that is required. The documentation can get a little more complicated for someone who is self-employed or owns their own business.
Down payment. You will need some amount of down payment to bring to the table, along with the funds from your loan, in order to complete this purchase. The amount of the down payment you are required to make in order to qualify for the loan will vary based on many factors.
Final walk-through. This is your chance to review the home and make sure that everything is as you expected before signing on the dotted line. If there are any changes that need to be made, you can go over those now with the seller and then proceed to closing when any issues have been resolved.
Closing on a home doesn’t have to be stressful, and it certainly can be exciting – this is the last step before you take the keys and move in. Work with a lender and custom builder who have a lot of experience and Stay in close contact with both of them throughout the process and everything should go smoothly.