As we’ve mentioned in other helpful articles, the home buying process is packed full of paperwork, key dates and contracts plus daily market movements and checklists that can fluster even the most experienced real estate investor!
We’ve also mentioned before how important it is to have a solid, professional real estate buying team assembled. We stress again how important this is in order to assure a smooth, painless process. Remember, these professionals can close upward of 20 transactions a month where you might purchase a few homes in your lifetime!
The mortgage loan closing process is often defined as the most critical part of the process but it’s also where things can go terribly wrong and where a professional team really proves its value.
If all of the initial questions, concerns and documentation has been done properly early on in the Arizona mortgage loan approval process as well as the home shopping process then you should feel confident that the closing should go smoothly. However, there are still a few things to make sure are in order prior to the close.
Regardless of the pre-approval and/or mortgage loan commitment letter, there are other conditions that must be met. Do NOT let your guard down just because things are looking good! Something as simple as an updated pay stub or a small change in your credit score might bring everything to a grinding halt.
Here are Six Prior-To-Closing conditions that could cause delays:
1 – Updated Income/Asset Documentation
Although you’ve supplied your Arizona mortgage loan lender with piles of paperwork, be sure to save all of your new paystubs and financial statements throughout the process. The odds are good that your lender might ask for the most current documents so be prepared.
2 – Credit Inquiries
Be aware that your lender might request a new credit report just before your closing to see if there are any changes. If the underwriter begins uncovering surprises, they might hold up the process to get to the bottom of things. Be sure you bring to the attention of your team anything that might be unusual which might cause a delay.
3 – Employment Verification
On more than one occasion during the process, your AZ mortgage loan lender will confirm that you’re actively employed. Again, anything unusual here might cause a delay so be sure to inform your team of any odd events that might be forthcoming.
4 – Funds for Closing
Mortgage lenders will want to source where every dollar for the upcoming transaction is coming from and will want to verify the deposits to your bank account. If you’re liquidating investments or drawing from a retirement account you’ll want to do this sooner rather than later!
5 – Title and Judgment Searches
Title and judgment searches are typically performed later in the process. These searches could reveal judgments against your name or the sellers along with liens against the property. All of these issues must be cleared up prior to closing.
6 – Homeowners and Flood Insurance Coverage
Mortgage lenders will be sure to review your policies a few days before closing to make sure you have enough coverage and that’s being accounted for in your monthly payment. This coverage can sometimes be difficult to obtain so make sure you’re working on this early.
Items To Bring To Closing:
Your real estate agent will likely supply you with a checklist of documents and items to bring to your closing. This can be a fairly detailed list, but the two most important items are:
- Funds To Close
- If you are required to bring in your down payment or other funds for closing, you will need a certified check from your bank. A personal check or a bag full of cash just won’t do! Make sure you know well in advance what the total amount will be so you can head to the bank and get that certified check.
- Proof of Identification
- Your official drivers license or state ID card will be fine. You could also bring a passport as well…as long as you can prove that you are really you!
Frequently Asked Questions:
Q: Does it matter what day of the month I close on?
A: If you’re more concerned about successfully closing with the least amount of stress, then early to mid month is usually the best time to close. It really comes down to the timing of the money and how it will be applied to the mortgage loan. Regardless, pay now or pay later but it all evens out at the end of the process.
Q: I am refinancing an FHA loan. Will it benefit me to close in the beginning of the month?
A: No. In fact, FHA refinances should always close at the END of the month because you are responsible for the entire month’s interest.
Q: Should I be concerned about the closing date on a conventional Arizona mortgage loan refinance?
A: Not really. You can save a few dollars by closing early in the month but it won’t amount to much. You WILL want to avoid closing on a Friday since you could be responsible for the interest due on both loans over the weekend.