{"id":19901,"date":"2020-11-30T06:00:26","date_gmt":"2020-11-30T14:00:26","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=19901"},"modified":"2020-12-01T12:28:16","modified_gmt":"2020-12-01T20:28:16","slug":"buyer-closing-day-tips","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/buyer-closing-day-tips\/","title":{"rendered":"13 Anxiety-Reducing Closing Day Tips for the Overwhelmed Homebuyer"},"content":{"rendered":"

As closing day nears, you\u2019re anxiously awaiting the moment when you\u2019ll finally become a homeowner. Up to this point, you\u2019ve scrimped and saved for a down payment<\/a>, spent weeks searching for a home, and finally found the house of your dreams.<\/p>\n

You\u2019ve made it through a long closing process and likely already overcome several challenging roadblocks. But there\u2019s still one big step left \u2014\u00a0you want to be mentally and logistically prepared for all that\u2019s to come.<\/p>\n

If you\u2019re like most homebuyers at closing, the happy rush of buying a home battles with fear as you sign your name to a massive mortgage while facing down an intimidating stack of papers covered in legalese.<\/p>\n

To help calm your nerves, we talked with an experienced real estate agent and scouted out great advice from dozens of reputable real estate sources. With that, we bring you 13 of the best closing day tips for this incredibly momentous occasion.<\/p>\n

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<\/a> Source: (FilterGrade \/ Unsplash)<\/figcaption><\/figure>\n

Tip 1: Remind yourself that you\u2019re not spending your savings, you\u2019re investing it in real estate.<\/h2>\n

It\u2019s only natural to feel butterflies on the day you make the major financial commitment to buy a house. Watching your savings account take a nosedive after making the down payment and covering closing costs is a shock to any system. And signing what may be a six-figure mortgage with a 15- or 30-year tenure is a huge commitment.<\/p>\n

When you start to second-guess your decision, remember that a mortgage is what experts consider to be good debt<\/a> because real estate typically appreciates in value over time<\/a>. It\u2019s the old \u201cspend money to make money\u201d line of thinking.<\/p>\n

Through purchasing a house, you\u2019re investing in an asset<\/a> that you should have every reason to believe will increase in value over your course of ownership. Take comfort in the fact that, historically speaking, real estate is a more consistent wealth builder<\/a> than other investments.<\/p>\n

Tip 2: Calm mortgage payment panic with a solid repayment strategy.<\/h2>\n

Be prepared for panic when you realize that most of your early mortgage payments go toward interest<\/a> rather than paying down your principal loan balance. That panic becomes paralyzing when you think about how old you\u2019ll be when you finally pay off your 30-year mortgage.<\/p>\n

So keep this in mind: A little more money goes toward your principal balance with every payment you make. And if you want to speed up your end goal of paying off the house, you\u2019ll have the ability to do that at your discretion.<\/p>\n

\u201cWe jokingly tell buyers not to look at the amortization schedule because it\u2019s sad how little money goes toward paying down the principal loan in the first year,\u201d says April Stephens<\/a>, a top performing Raleigh, North Carolina real estate agent.<\/p>\n

\u201cInstead, we tell them that you can build that equity investment faster if you pay one extra mortgage payment a year toward the principal only.\u201d (Note: You may need to specifically tell your lender you want to apply the additional payment to principal only so they don\u2019t just flag it as an early payment for the next month. This will ensure the entire payment goes to principal.)<\/p>\n

For example, let\u2019s say you\u2019ve got a $1,200 mortgage payment. If you earmark one extra payment a year, that\u2019s just putting aside an extra $100 a month.<\/p>\n

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<\/a> Source: (Tim Foster \/ Unsplash)<\/figcaption><\/figure>\n

Tip 3: Plan your route in advance and give yourself ample travel time.<\/h2>\n

With your nerves already on edge, the last thing you need is to be late to your closing appointment. The negative energy that comes when you keep people waiting will suck all the joy out of day. Plus, you\u2019ll feel rushed while making a huge financial commitment, which will only feed any doubts you have about the home purchase.<\/p>\n

Avoid this stress with a bit of careful scheduling and travel planning. In most cases, your closing appointment will happen at a location you\u2019ve never been to before, such as the title company\u2019s office. Plan the best route to this unfamiliar locale in advance with your favorite GPS app. Be sure to account for potential road closures and inquire ahead of time about the parking situation.<\/p>\n

Tip 4: Arrive early and set aside at least an hour for the meeting.<\/h2>\n

If you want to arrive with plenty of time to spare, check your map app within the same timeframe that your appointment is scheduled, and add at least 15 minutes to the projected travel time estimate.<\/p>\n

\u201cFor most buyers, the closing appointment typically takes less than an hour to sign all the loan paperwork,\u201d advises Stephens.<\/p>\n

\u201cI recommend that buyers arrive 10 to 15 minutes early because the paralegal is going to need to make copies of your driver’s licenses before the attorney notarizes the closing documents.\u201d<\/p>\n

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<\/a> Source: (Kelly Sikkema \/ Unsplash)<\/figcaption><\/figure>\n

Tip 5: Check that everyone on the mortgage has their identification along.<\/h2>\n

\u201cAll a buyer really needs to bring to the closing is legal identification and payment for the closing costs,\u201d says Stephens.<\/p>\n

\u201cSeveral times I\u2019ve had couples forget to bring one spouse\u2019s ID to the closing. One time, the couple met up to drive to the closing appointment together, only to realize the husband left his wallet in his truck after they arrived. So we had to stop what we were doing so he could go get it.\u201d<\/p>\n

To cover all your bases, you should also check with your agent on whether you\u2019d need to bring any of the following:<\/p>\n