Purchasing a new home is a wonderful milestone, which shouldn’t diminished by a delayed or problematic closing. There are several ways to prevent closing days. Here are a few to keep in mind if you are buying a home in Massachusetts.
Select a Good Lender
Choosing the right lender can make all the difference when it comes to your closing. From our experience, local lenders are great to work with. They often have local staff that are easy to reach and focus on customer service and satisfaction. Online lenders can sometimes be more impersonal and difficult to reach (especially if their call centers are located in another part of the country). Local lenders include small companies and/or large ones with local branches/staff. So, you can still pick the type of lender you wish to work with.
Set a Reasonable Deadline to Begin With
The most common mistake for buyers is entering a mortgage commitment and closing deadline in an offer or P&S without first checking with their lender. The time needed to process and close on your loan will vary depending on the lender and the amount of loans in their pipeline. Thus, you should check with your lender before entering any dates into an offer. This also avoids the need for requesting extensions later in the process.
Provide Paperwork to Lender Promptly
As part of their due diligence, your lender will request quite a bit of information from you. You may have given them a lot already for your pre-approval, but it’s common to see additional requests as your loan is reviewed. Be sure to promptly reply to their requests to prevent closing delays. This includes signing of disclosures, as some must be done a certain number of days before closing (per law).
Sign the Purchase & Sale Agreement as Soon as Possible
Most lenders can’t submit loans for processing until they have a signed Purchase & Sales (P&S) agreement. The P&S provides the detailed terms of your purchase, which must be reviewed by your lender as part of their approval process. It is also needed to order an appraisal, which is a critical step in the process. Thus, it is in your best interest to have the P&S negotiated and signed as quickly as possible.
Hire a Good Real Estate Attorney
You will need an attorney to review and negotiate P&S terms on your behalf. Although any attorney in MA could technically assist you, it’s best to go with a real estate attorney since they will be more familiar with real estate laws and best practices. Also, make sure your attorney is readily available to assist with P&S contracts.
Although some closing delays are out of your control, there are some that can you prevent. Contact us for assistance with your next home purchase or home sale in Massachusetts!