How Can You Avoid Closing Surprises with Your Mortgage?

Posted by on Tuesday, December 4th, 2018 at 12:26pm.

How to Avoid Home Closing Surprises Surprises at closing are never fun to deal with or a good thing. They can actually cause the entire deal to fall apart. However, mortgage surprises can be avoided. Here are a few tips to help you avoid any surprises when you get to the closing table.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.

Honesty Only

Don't hide anything from the buyer or the seller. Regardless of which side of the deal you are on, if you are not honest, the truth will come out. This can destroy the deal fast and can cause even bigger issues with trying to get the deal back.

Make Sure you Choose the Right Terms

If you don't choose good terms when buying a home, you may regret it at closing. You cannot just look at the price. There has to be more to it than the price and you have to know the terms of the deal. If you get to closing and you don't understand what the deal is all about, you're in for a surprise you may not like.

Common Contingencies in a Real Estate Contract

There are three common contingencies that home buyers often include in their home purchase contract. The financing contingency allows home buyers to back out of the contract if their mortgage loan does not fund. The appraisal contingency allows the home buyer to cancel the contract if the home does not appraise for the proper amount, although home buyers can try to renegotiate the sale price of the home if they would like.

Finally, the home inspection contingency allows the home buyer to walk away from the sale of the home if the inspection turns up a problem. These contingencies are in the contracts to protect home buyers during the purchase process.

Get a Solid Pre-Approval

Sometimes, a pre-approval can be weak and it can cause issues at closing. However, if you have a solid pre-approval with written proof, you won't have much to worry about. Make sure everything is fully documented and you take the home-buying process seriously from start to finish.

Remain Calm

Sometimes a surprise is a good thing and other times it's not that big of a deal. Make sure you remain calm during the closing and you may just find the surprises are not that big of a deal. However, sometimes surprises are a big deal, but you still need to remain calm.

Closing can be stressful and you may find some surprises. However, if you have a good real estate agent and lender, you won't have much to worry about.