Closing on a home is the final step in the home-buying journey, but it’s not always smooth sailing. Even the smallest errors can cause delays, jeopardizing the transaction and potentially costing both time and money. As a residential realtor in Indiana, I’ve seen firsthand how certain mistakes can stall the closing process. To ensure your home purchase stays on track, here are five common mistakes buyers make—and how to avoid them.
1. Failing to Maintain Financial Stability
Lenders monitor your financial situation closely until the day of closing. Any major changes, such as taking out new loans or making large purchases, can disrupt the mortgage approval process.
How to Avoid It:
Avoid opening new credit accounts, financing large purchases (like a car or furniture), or making big withdrawals from your bank account before closing. Maintain your financial profile as it was when you were pre-approved for the mortgage.
2. Missing Documentation Deadlines
Lenders and title companies require a significant amount of documentation to finalize the loan and prepare for closing. Delays in providing the necessary paperwork can slow down the process.
How to Avoid It:
Stay organized and respond promptly to requests for documentation. Keep copies of pay stubs, tax returns, and bank statements readily available. Working closely with your lender and realtor can help you stay ahead of deadlines.
3. Not Scheduling a Home Inspection or Appraisal in Time
Home inspections and appraisals are critical steps in the closing process. Delays in scheduling these services can push back the closing date, especially in busy markets where professionals are in high demand.
How to Avoid It:
Schedule the home inspection and appraisal as soon as your offer is accepted. Your realtor can help coordinate these appointments to ensure they happen on time.
4. Making Last-Minute Changes to the Loan or Down Payment
Changing the type of loan or adjusting the down payment amount late in the process can cause delays, as lenders may need to reprocess your application or revise documents.
How to Avoid It:
Finalize your loan type and down payment amount early in the process. If you’re considering any changes, discuss them with your lender and realtor immediately to assess the potential impact on the closing timeline.
5. Failing to Review Closing Documents in Advance
Waiting until the last minute to review your closing documents can lead to overlooked errors or misunderstandings, which may require corrections and delay the closing.
How to Avoid It:
Ask your lender or closing agent to provide the closing disclosure and other key documents several days before the scheduled closing date. Review them carefully and ask questions about anything you don’t understand. This proactive approach ensures everything is accurate and ready for signature.
Final Thoughts
Closing on a home is an exciting but detail-intensive process. By avoiding these common mistakes and staying in close communication with your lender and realtor, you can keep your transaction on track and ensure a smooth closing experience.
If you’re planning to buy a home in Indiana, I’m here to guide you every step of the way. Contact me today for expert advice and personalized support to make your home-buying journey as seamless as possible.
