Whether you are buying a new home for your family or a property to rent as an investment, closing on a real estate transaction can create stress. You can reduce the uncertainty of the time leading up to real estate closing with careful preparation.
Take these steps to get ready for a successful settlement as a real estate buyer.
Solidify your interest rate
When a seller accepts your offer, ask the lender where you received your preapproval to lock in your rate. Usually, they can hold a favorable interest rate for 90 days as you prepare for settlement. If you have not already shopped around for a mortgage, do so as early as possible so you will have funding in place when you close.
Ensure clear title
A real estate attorney can perform a title search to make sure that no outstanding liens on the property will affect your purchase. You should also purchase title insurance to protect your investment in the home in case a title issue arises in the future. In fact, your mortgage lender will require you to have title insurance.
Have an inspection
Your purchase contract should have a contingency that allows you to back out of the transaction if a home inspection reveals problems. Always have the property thoroughly inspected by a qualified professional. You can renegotiate your purchase contract or walk away from the property entirely depending on the findings.
Following these preparatory steps can help you avoid costly closing delays or even a transaction that falls apart before you get a chance to finalize the deal.