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5 Things You Should Know as Closing Day Approaches
Once a seller accepts an offer, the time comes to sign paperwork which seals the deal. What most Ohio home buyers don't realize is that a real estate process is complex with lots of nuances to the transaction. Learn some important things to keep in mind on the road to home ownership.
Expiring Mortgage
Mortgage interest rates may fluctuate daily. Rather than have the stress of the interest dial moving up and down, a bank will 'lock in' an interest rate for 45, 60 or another number of days. Once this expires, a higher rate kicks in. Some issues that may come up as a result may include:
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Open permits
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Illegal renovations
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Roadblocks which require stop to loan process until resolution
A previous homeowner may have done renovations that do not meet today's standards and require updating prior to selling. This can require hiring an architect and documenting the issue before a bank will approve the loan. Be cautious when using a rate-lock expiration as it may throw plans out the window in the closing process.
The Mortgage Process Doesn't End
Just because an application is completed and submitted does not mean a loan is approved. Lenders need to verify income, assets and credit all the way until closing. Any last minute changes or fluctuations could result in some unforeseen challenges if not discussed previously with a mortgage professional.
See the House
A walk-through is usually provided up to 24 hours prior to closing. Take advantage of the opportunity to see the property in case any systems are not working, the seller did not finish repairs or has not completed move out yet. It is possible to postpone closing until things are completed.
Do Your Homework
Once the home closes, in most states, the law resides on the side of a buyer and requires the seller to disclose issues and confirm resolution. The purchaser should make sure the seller closes outstanding permits, releases liens on the title and resolves issues with local authorities.
Low-Key Closing
Most of the time, closings finish up without any issues. Buyers sign the loan documents and the seller goes to the title company to sign off. It is seamless and happens without issue. Buyers and sellers along with other folks may sit around for a time processing, calculating and negotiating. If the transaction was less than smooth, the closing table may get tense but it may end up being low-key.
A smooth closing can be had with some research up front and awareness of any red flags. Make sure to have a solid real estate team who is knowledgeable and will refer you to the right parties to resolve any issues prior to closing. Get as much information in the beginning as possible for a great resolution and closing.
Choice Properties is the premier realty company serving communities in and around Logan County. Award-winning agents provide assistance on residential to commercial, agricultural to waterfront properties and more to best serve your needs.
Call us to find out how we can best serve you.