Where there is money involved, there is also stress.
Closing on a home can be one of the biggest investments in your life. Keeping your cool when closing on a home can be the difference between a smooth transition into your new home and a hair-pulling nightmare at every turn.
Besides getting advice from your mortgage broker and your real estate agent, here are a few home closing tips on how to stay prepared and take the stress out of this landmark life-event:
When you are down to the wire, you do not want the closing to be riddled with extra hotel expenses, storing packed furniture, late rental truck fees, or other unfortunate delays.
Plan a budget that accounts for six months of bills and expenses. Whatever budget range you come up with…add cushion.
For first-time homebuyers, you’ll be bombarded with the prospects of a 3.5% down FHA loan, but in order for that to happen, you may end up paying an additional 5% of the purchase price just to meet that figure.
Do not make the mistake of only budgeting for the minimum monthly requirements after bills, mortgage, and so on. Budget for comfort, not constraint.
Is your new home ready for you?
To ensure a seamless gap from the time you move in, be sure to follow this checklist on things that need to be transferred under your name by the date you move in:
- Mortgage info
- Homeowner's insurance
- Cable, phone and internet service
- Mail delivery
- Property taxes
- Bank drafts
Keep a record of all your exchanges, and make sure new service providers have all your corrected bank information, as well as your new address. The same information should be updated for all your credit cards and subscriptions.
Everyone wants a little money under the table. Remember that when you close on a house, to expect the unexpected.
These are the most common items that comprise closing costs in Atlanta:
- Application Fee
- Processing Fee
- Hazard Insurance
- Lender’s Title Insurance
- Owner’s Title Insurance
- Termite Letter
- Transfer Tax
- Intangible Tax
- Attorney’s Fee
- Incidental Fees
Sometimes you can negotiate for the seller to cover the closing costs. It never hurts to ask when you make your initial offer. Here is a sample Home Buyer’s Closing Cost Calculator that shows how much closing cost figures could add up to on a $120,000 Atlanta home.
After your inspection, you may find a few things worth fixing. Many times you can request that the seller make repairs as part of the closing terms. Follow up with your requests before the closing date to ensure they have held up their end of the bargain. Also, remember that there may be other things that you may not have taken into account when moving into your new home in your initial assessment, so have a little extra cash stashed away to take care of things.
Remember your rights: If there are any major discrepancies in the home upon your arrival, such as foundation issues, black mold, or any other hazardous issues that were not mentioned, then you may be able to retract your offer and pull out at the last minute as a safeguard.
Being prepared is the only way to truly reduce the stress of buying a new home. Hopefully these home closing tips will help you ease into your new home with confidence as you start the next big chapter of your life. For more information on closing on a home, feel free to contact The Atlanta Homes.