Pre Closing Tips for New Home Buyers

Pre Closing Tips for New Home Buyers

There are a number of important things you need to do before closing on your new home. The following is a checklist of important pre-closing tasks for your consideration.

Get an Inspection

A home inspection can uncover serious issues that you may have never noticed, including a bug infestation, faulty foundation, leaky roof and hidden water damage. Always have a home inspected before closing the agreement. It may cost up to $500 to inspect the home but it’s well worth the price.

Get an Official Home Appraisal

The amount you are willing to pay for a particular new home does not necessarily denote its official value. An appraisal will show you exactly how much your house is worth. You’ll need to know the exact value of your purchase if you intend to refinance the home in the future. An appraisal will also come in handy if you sell the home later on.

Get Final Mortgage Approval

Getting pre-approved for a mortgage will help you gain a home seller’s trust as it shows you are serious about buying his or her home. Even so, you’ll still need final mortgage approval from your mortgage lender in order to obtain funding for your purchase. A mortgage company will typically work with an underwriter to review your documents one last time before providing you with the home loan. The underwriter will make sure your paperwork is accurate and your financial situation is the same as when you originally applied for a pre-approved mortgage loan.

Be Prepared to Cover Closing Costs

There are a number of closing costs you’ll need to cover before purchasing your new home. These include prepaid expenses such as homeowners and mortgage insurance, mortgage points to lower your loan’s overall interest rate, and out of pocket expenses for deed recording, tax services and other miscellaneous costs. If you aren’t sure how much you’ll need to pay, talk to your loan officer so you know what to expect.

Mortgage Investors Group is a leading home mortgage lender in the state of Tennessee. We offer multiple loan options, friendly and fast service and knowledgeable, personalized advice that can help you make wise, well-informed home purchase decisions. Get in touch with us to learn more about obtaining a mortgage loan and closing a deal on your new home.

Categories: Real Estate

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