Closing on a home is a complicated yet thrilling part of buying a property. Although it’s detail-intensive, working through this can lead to you owning a home, so it’s worth it.
After you’ve opened an escrow account and did a quick title search for peace of mind, you may feel nervous about the next steps. Here’s what comes next, leading you to owning the home you want.
Negotiate Closing Costs
If you’re in a buyer’s market, or the home is a little overpriced for you, and you’re motivated to buy, consider asking if they’ll cover closing costs. Sometimes a seller will fold and cover all of them, while more often, a seller will pick certain parts to cover. This piece of negotiation can save you thousands of dollars, so don’t skip it.
Complete Home Inspection
In this step, you’ll pay a home inspector to go through the property and let you know what work it needs. A home inspection will usually result in a five to twenty-page document that enables you to know anything the inspector notices about the property. They search everything from the attic to the basement and all of your appliances and electrical wiring. If they see any problems, they’ll let you know, which can inform how you move forward.
Renegotiate the Offer
After you’ve received information on the home inspection, you can take that to try and negotiate a lower price for the home. This could mean you put in a lower amount on your house payment calculator and eventually pay less per month. Your seller can push back and try to negotiate to come out better for them, but it depends on what the inspector found and what quality the home is in.
Lock in Your Interest Rate
Your interest rate will determine a large amount of how much you payback. For example, you mustn’t open any new credit cards or buy a new car until you lock in your interest rate. In addition, any slight hits to your credit score may affect your interest rate, which means you won’t be able to correct it until you’re capable of refinancing down the line.
Finally, you get to walk through the home one more time and ensure there’s nothing else that you want to add or change. Don’t let your excitement for how close you are ruin your ability to see flaws or perks. If you want them to throw in furniture or rugs, it’s not too late to mention it now, but you should try to mention it quickly. Many times sellers will throw them in because they don’t want them, or they bought them to stage the home.
Closing on a home is the final step to seal the deal and make the property yours. Do what you can to ensure that you’re getting everything you want out of the agreement and that your interest rate is one that you can afford. If all goes according to plan, this house could be yours in no time!