A Series for the First Time Homebuyer, Nashville Style! STEP NINE: THE CLOSING!
So you have decided that you want to take advantage of the First Time Home Buyer's $8000 Tax Credit?!! This may be a great idea for you because in Middle Tennessee, you have got LOTS of homes to choose from! Your dream of homeownership may soon become reality!
If you have never bought a home before (believe it or not, a "first time home buyer" just means that you have not owned a home in the past three years), the idea of it might be a little bit daunting. This series that I am putting together strives to help clarify the steps that will lead you into your new front door!
And now we are at the GLORIOUS CONCLUSION!!! THE CLOSING!!! First of all, CONGRATULATIONS for having made it this far! Buying your first home is a very stressful event, so if you have made it this far then you have the hard stuff behind you!
Before you hit that closing room, though, your realtor should take you to do a "walk through." This is simply where you go back over to the property you are about to purchase and look it over to make sure that it is in the same condition that the seller said it would be in. When you have done this, then it will be time to go to the closing!
Your realtor should let you know when your closing date and time is. If he or she has failed to do so, then give them a call, at least several days in advance! Most likely you will be closing during a weekday, so time off from work will be necessary.
I recommend setting your closing date for a Wednesday or Thursday, especially if your loan is going to be a VA or FHA one. The reason for this is that if there is a glitch in the loan being able to be closed, then you still have one or two more weekdays to allow your lender to work this out. Then you will also have the weekend to get moved! NOTHING IS WORSE than your loan not being approved on a Friday - then you have to wait the entire weekend (agony) before you can get some straight answers as to what is going on.
A word of warning: People who work in the real estate industry are NOTORIOUS for being flippant about the closing date and time!!! To you, it is something that is set in stone. To real estate industry veterans, the closing date and time is NEVER set in stone. I try to remind all of my clients of that reality continually. SO MANY THINGS CAN DELAY A CLOSING... extra paperwork needed, extra sign offs by FHA and VA inspectors, extra inspections required, the list is really endless.
Also, be prepared because closing costs can change at the last minute as well. I have seen them change by as much as a thousand dollars ($1000 - gulp). You will need a certified or cashier's check from your bank to cover these closing costs - and you need to confirm with your realtor as to which one you need the day before closing.
One document your realtor should give you a day or two before the closing is the HUD-1 statement. This is an extremely important document which will run down the numbers for both the seller's side and the buyer's side. Honestly, the first time you see one of these you will be REALLY CONFUSED. Your real estate agent should go over this with you, but if they don't offer then ask! And if you find anything on that statement that seems questionable, then ask! And then ask some more!!!
If your closing takes place during the business day, then you should be able to ask not only the realtor, but also the seller (through your realtor), lender and the closing attorney any questions that you have.
REMEMBER: Be flexible. A lot of things have to come together in order for there to be a closing! It may or may not go completely smoothly - so be aware of this fact!
Best wishes in your search and move! I would love to be the Realtor to help you and either way I wish you well!
If you are interested in selling or finding a home in Green Hills, Downtown, 12th South, or Oak Hill area of Nashville, or would like to look at other real estate for sale in the Middle Tennessee area, please search the MLS HERE. Please note: You will have to register with my site to be able to search the MLS. I will contact you initially and all requests thereafter for privacy will be respected.
Looking to move? Wanting to Invest? Need help as a First Time Buyer? Please feel free to call me, Emily Lowe (yes, I'm a Realtor, with The Lipman Group Sotheby's International Realty) at 615.509.1753