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Reminders - Before You Close
- Keep copies of all earnest money checks and proof that the checks have
cleared your bank. Provide this documentation to your lender so that you get
proper credit on your closing documents.
- Notify your mortgage company of the final sales price at least five days
prior to your closing. If your sales price changes from the original
contract, the lender will need copies of all addendums and change orders for
the upgrades. The final closing documents cannot be prepared until both
builder and buyer agree to the final sales price.
- A final inspection is required on all new construction before the loan
is closed. The appraiser must inspect the property to ensure that it was
completed to the original plans and specifications. The mortgage company
schedules this inspection. The home must be COMPLETE and READY TO MOVE-IN
before the appraiser can perform the final inspection. The charge for the
final inspection is $100 which will be included in your closing costs. If
the home is not complete when the appraiser goes out, he will have to
inspect it again which will be an additional $100 charge. Please consult
with your lender as to the best date for the final inspection.
- Your home must be completed before closing. This includes landscaping,
pool, fence, etc. If you would like to arrange to escrow for these
improvements and close before they are complete, notify us at the time of
locking in your rate. Only a few investors will allow for escrow holdbacks.
- Bring a cashier’s check made out to the title company for your closing
costs.
- If the amount you need to close is less than $1500, you may write a
personal check.
- Tell your lender if your salary or other compensation has changed from
what has been noted on your loan application.
- Inform your lender if your address changes from what appears on your
original loan application. They must complete rental and mortgage
verification for all of your residences within the last two years.
- Obtain homeowner’s insurance with minimum coverage equal to the amount
of your total loan or the replacement value of the house. Call your lender
with your agent’s name and phone number at least 10 days before closing.
- Keep documentation (or a “paper trail”) on any large deposits into your
account. A “paper trail” should include copies of all paperwork necessary to
prove a financial transaction: copies of all checks, deposit slips, loan
paperwork, forms to liquidate assets, etc.
- Notify your lender if you move funds from one account to another and
provide a “paper trail” on any transactions.
- Do not acquire any additional debt or make any large purchases on
existing credit without first consulting your lender. For example:
purchasing a car or buying appliances for your new home will change your
debt to income ratios.
- Do not change jobs without consulting your lender. A change in
compensation may affect your ability to qualify. Buyers must have a two-year
history of bonuses and/or commissions to be counted as income. Lenders may
verify employment on the day of closing as a quality control check.
- Do not co-sign with anyone to obtain a line of credit or make a
purchase. The payment will show up on your credit report as an additional
debt.
- Do not negotiate your contract with an allowance and expect to get money
back at closing. An allowance can be used only to pay closing costs or
reduce the sales price.
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