Avoid these Mistakes When Closing on Your New Home in Huntington Beach
Thinking ahead about how to prepare for closing on a home in Huntington Beach? We’ll share some of the common mistakes that homebuyers often make during the closing process that can cost you time and money and even cause you to lose the deal itself.
Don’t worry. After reading our article, you can avoid these mistakes and make your closing experience as smooth as possible. And you can always reach out to the mortgage professionals at Lux Funding.
What are the common mistakes buyers make when closing on a home?
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Not reviewing documents thoroughly.
With an attention span lasting only seven seconds these days, you may be one of those who don’t read long documents in a single sitting.
One of the most common mistakes homebuyers make during closing is not reviewing closing documents thoroughly.
We can’t stress the importance of ensuring everything is in order during the closing process, including loan documents, title documents, and all related paperwork.
Not reviewing documents can lead to errors and delays that can be costly.
It involves a lot of reading, but you have to remember that you are making the largest purchase in your life.
Once you sign the dotted line, everything written in the contract is legally enforceable.
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Not having enough funds during closing.
Closing costs can add up in a hurry. They include fees for appraisal, loan application, and lawyer’s services.
If you don’t prepare enough money to cover closing costs, you may be unable to close on the home you desire.
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Not obtaining homeowner’s insurance.
It is essential to obtain homeowner’s insurance before closing. You need to protect your new investment, and without the proper insurance, closing may get delayed.
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Not doing a final walk thru of the property.
Doing a final walkthrough of your dream home ensures that the property is in the same condition as when you made your offer.
Who knows, you may discover issues that weren’t there before.
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Not understanding the mortgage terms.
Mortgage terms are complex, especially for newbie homebuyers. If you don’t fully understand the terms of the loan, you may end up with unwanted surprises down the road, like unexpected fees and penalties.
Conclusion
Closing on a home can be complicated, especially if you do things quickly.
As a seasoned mortgage lender, I’ve witnessed many borrowers make mistakes during the closing period that could have been avoided with the proper knowledge.
We’ve discussed the most common mistakes homebuyers make, and we recommend doing these steps to avoid making them.
First, review the closing documents and ensure you have enough funds to cover closing costs.
Next, don’t forget to purchase homeowner’s insurance, do a final walk-through of the property, and lastly, understand the terms of your mortgage.
If you are not sure you understand everything written in your contract, ask your mortgage professional at Lux Funding or real estate agent questions until they are clarified.
With all these accomplished, you can rest assured that your closing process will be enjoyable and stress-free.
* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.