4 Common Mistakes That First Time Homebuyers Make During The Closing Process
You can walk into a car dealership and walk out with a brand new vehicle in your name in less than two hours. Can the same be said for buying a home? Obviously not. Finding the right home and closing on it, in addition to finding the right title insurance policy for it, usually takes a few months, if not even longer for many people.
This difference in timeframe helps to highlight just how big of a deal buying a new home is. Whether you’re in search of a recently constructed, brand new home or a new-to-you home, first time home buyers should know that they’re getting into the most serious purchase of their lives. Fortunately, Title Partners of South Florida can help South Florida home buyers like you.
Expert Title Insurance Services In Broward County, Miami-Dade County, And Beyond
Even if you’re a diligent home buyer and you do everything in your power to cover all of your financial and legal bases, there are certain areas that need to be taken care of by a professional company. Title insurance is one of these often overlooked areas, and in order to protect the future of your property and possessions and people within it, it’s essential to work with the right title insurance company.
Title Partners of South Florida brings over two decades of closing experience to the table. If you need help with closing and you’re unsure who to trust, choose us. Our 200+ beaming Google reviews are a testament to our integrity-driven services, and after you reach out for an initial consultation with our friendly team, you’ll be confident that your purchase is in good hands.
To better assist first time home buyers in their pursuit of buying a home, keep reading below to learn more about some of the most common mistakes that people in your situation tend to make.
4 Common Closing Mistakes For First Time Home Buyers
#1: Making Big Purchases Prior To Closing The Mortgage Loan
You’re about to make the biggest purchase of your life, and this purchase will be hundreds of thousands of dollars. Of course, most people don’t have nearly that amount of cash on-hand, and so they finance their home via a mortgage loan. That’s standard issue as far as home buying goes, and the average down payment on a home usually ends up being around 13% of the total price.
Because you’re financing the rest of that cost, lenders are going to extensively review your credit status and subsequent history even after you’ve already been approved for your mortgage loan. It’s true; lenders will re-check your credit right before your official closing date and before you’re actually receiving the funds from them. This means that it is absolutely essential to hold back on making any “big item” purchases such as a car, boat, expensive piece of furniture, appliances, or really any four-digit purchases in general.
#2: Quitting Or Switching Jobs
It’s one thing to suddenly change your employment situation right before financing a new vehicle (which still isn’t recommended), but it’s another thing to do so as you’re closing on a house. As you can guess, lenders want proof that you’ll be able to afford your monthly mortgage payments, and this proof comes in the form of a stable income history — ideally, several year’s worth at the same company.
If you’ve been planning on transitioning jobs or have received an offer for a better job at another company, it’s in your best interest to wait until you’re completely done with the closing process before embarking on any other employment opportunities. However, some lenders are OK with customers switching jobs if it pays better or if you have a history of low debt, so there is some flexibility in this area.
#3: Ignoring Questions From Your Broker Or Lender
In the conclusion of your home buying process, there’s really no one more important than your broker/lender and the title insurance company that you work with. It’s absolutely in your best interest to be responsive by answering calls, replying to emails, and being as easy as possible to work with. After all, these are the folks who have the power to give you your new home…or deny you of a mortgage loan.
(Don’t worry, though, because our title insurance company is flexible and understanding!)
#4: Changing Your Bank Accounts
Now is not the time to mess around with any of your bank accounts, let alone open a new one. This is especially the case if you’re thinking about opening a new line of credit. A responsible first time home buyer does their research before they’ve even started working with a realtor, and they should have their finances in order well before they’re applying for a mortgage loan.
If you need to transfer large sums of money between different bank accounts or close/open accounts, make sure that you do these things prior to the closing process. Of course, you still have every right to utilize your bank’s account services, but for the sake of being thorough, it’s worth asking your banker, lender, and/or realtor about any potential ramifications.
Ensure A Smooth Closing Process With Our Broward County Title Insurance Company
A clear title on your brand new home or new-to-you home is an essential component to a smooth, hassle-free closing experience. The team at Title Partners of South Florida can help make sure that your home stays in your hands for as long as you’d like to own it — the way that owning a home should be.
To get started with clearing your home’s title or finding the right title insurance policy for you and your new home, get a quote from us or contact our Broward County title insurance company with any questions.