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August 2, 2008
Advice for the closing
So we're the fools who have bought our first house in this climate (we got evicted from two rentals in the past three years because of condo conversions) and we're approaching our first closing. Have heard horror stories and wondering if anyone can share any good advice about how to prepare; not to pay even more money than we're already paying, etc. thanks so much in advance.
Comments
Make sure your Mortgage Broker tells you how much money to bring to the closing table. Don't open any NEW credit and don't buy nothing (Like a new car or house furniture). It will affect your ratios on your mortgage app and your Mortgage Broker will be pissed at you. Do your walk thru and if you see something wrong bring it up at closing. Remember when the deal closes its your house. Last thing if some charges come up don't freak out, let your Lawyer take care of it. I hope this helps, good luck!
The What
Someday this war is gonna end....
Oh one last thing! Some Mortgage Brokers are slime balls. Make sure you have your Good Faith Estimate with you and if the Asshats tries to bang points on the back. Tell him/her to go Cheney yourself!
Posted by: what at August 3, 2008 4:42 PM
Some closing costs are fixed: lawyer, taxes, title, insurance, etc. Some, like bank fees, are negotiable. You should have a chance a couple days before closing to see your bank closing fees and haggle on any you think are unreasonable (application fees, other add ons)
Other than that if your lawyer has done their job, any outstanding issues - title, inspection, etc. - should have been addressed before you get there.
Posted by: LilBitOfLuck at August 4, 2008 7:24 AM
As a veteran of uneventful and eventful closings, it is my sense that they echo what has happened before. If all dealings to date have been routine, uneventful and smooth, your closing is likely to be as well. If you have had difficulties with the seller, mortgage broker or bank before closing, your risk of weirdness at closing is higher.
If you have specific areas of concern based on your interactions to date, raise them with your lawyer. Post here if you want second opinions for what they are worth here.
Posted by: slopefarm at August 4, 2008 12:11 PM
If you see anything in the final walk-through that needs to be addressed WRITE IT DOWN (make a list) and give it to your lawyer. You should have your lawyer and the seller's lawyer sign the list.
Posted by: brooklynfamily at August 4, 2008 1:06 PM
Make sure everything in your financial life is accounted for....and i mean EVERYTHING. I closed on a 750k townhouse a month ago and they were asking me to account for a $300.00 check I had cashed six months ago. Keep in mind this was less than 1/4000th of my income for the year. All anyone is looking at right now is your debt/income ration. Thats the bottom line. And don't believe anything the mortgage broker tells you....it's not going to happen until the underwriter says so. Plan accordingly. I would also recommend avoiding Chase. Their mortgage department is pretty unscrupulous. I'd recommend Wells Fargo.
Posted by: deepBTUz at August 4, 2008 10:58 PM
Speak with your agent to make sure that there are no fees that the board or Condo association is charging at closing. Your mortgage broker/banker (I'm a Banker FYI) may not know about these fees. I closed on a loft couple months ago and I had to pay an extra thousand dollars to the condo association for "working capital" I've been in mortgage banking for about 10 years and even this one got by me and this was my own property. Best to check with all parties involved prior to getting your checks for the closing.
Also not all bank fees are negotiable. If you haggled yourself a very good rate the bank is probably working on a thin margin and they will not cut any fees. I did a loan for a friend of mine and gave them a rate .25% lower than anyone else they spoke to and 1 day before the closing they tried to get me to cut fees. Let alone that I spent close to 1 year working with them on 2 properties and a lawyer from hell. I was insulted and had to deny their request as I was already working below the bank's minimum. If you are happy with the rate and your banker/broker/loan officer treated you well don't try to be cheap at the last minute and squeeze them.
Posted by: Adam Dahill at August 5, 2008 6:56 PM
I just closed on a place last month. I was in constant contact with my RE Lawyer and told him honestly that I was a first time buyer and knew nothing about RE and needed to be walked through the entire process as it unfolded and have evertyhing explained to me. He was great, took care of it all and advised me every step of the way. As a result I had no surprises, until the next day......
You must be very careful at the final walk-through. Our seller had the house perfectly staged and we thought we had all the issues put into the contract. We closed the day before they moved out and when we saw it empty there were many more problems than we could have anticipated. I was very upset but there was nothing I could do at that point since the papers were all signed.
What I now know is that I will NEVER, EVER again purchase a home until I have seen it completely emptied of every last single thing. There were electrical, wall and floor problems hidden by furniture that completely fooled us and the inspector. We are now having to put about $50K more into it for repairs.
Posted by: premadas at August 6, 2008 12:27 AM
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