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5 common mistakes homebuyers make when closing on a house

On Behalf of | Jan 23, 2025 | Real Estate

Buying a home is an exciting milestone, but it comes with challenges and complexities. Closing on the house is one of the most critical stages in this process. This last step can be overwhelming if not approached with care. Here, we will explore five common mistakes that homebuyers often make during closing and provide insights on how to avoid them.

Rushing the process

The thrill of purchasing a new home can lead you to rush through the closing process. However, moving forward without careful consideration can result in oversights. You should take your time, review all documents thoroughly, and understand every detail before signing. Patience at this stage can save you from future headaches.

Not reviewing essential documents

One of the most critical yet frequently overlooked steps in closing is reviewing all important documents. You will receive a Closing Disclosure three business days before closing. Use this time wisely to compare it with your Loan Estimate. Additionally, you can request documents such as the promissory note, mortgage, and deed in advance. Verify every detail and ask questions if something is unclear. Understanding what you are signing will help you avoid unexpected obligations.

Skipping the home inspection

Skipping a home inspection to save time or money can lead to costly repairs later. A professional inspection provides a comprehensive evaluation of the property’s condition. It identifies potential issues that may not be visible during a walkthrough. Investing in an inspection gives you a clear picture of the home’s state and can serve as a negotiation tool if problems arise.

Forgetting about closing costs

Another common oversight among homebuyers is forgetting to account for closing costs. These costs can include fees for loan origination, appraisal, title insurance, and more. While some fees are capped, others may vary. Review your Closing Disclosure carefully to understand the total costs involved. This ensures you are financially prepared and prevents any last-minute surprises.

Not getting proper insurance coverage

Finally, neglecting to secure adequate insurance coverage can leave you vulnerable to unforeseen events. Homeowners insurance is necessary, but consider additional coverage based on your location and property type. This might include flood insurance or coverage for natural disasters. Proper insurance protects your investment and provides peace of mind, knowing you are covered against potential risks.

Closing on a house requires careful diligence. By avoiding these common mistakes, you can navigate this process more smoothly. Each step brings you closer to successfully owning your new home. Remember, the goal is not just to buy a house but to make it a home you can enjoy for years to come.

 

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