What to Expect on Closing Day

Closing day Opens a popup.is a milestone for any home buyer: You sign the papers, pay the funds and get your keys. Sounds easy. But closing the deal isn't always simple. Closing day involves many people, so delays can happen. But, you can do your part to help it go as smoothly as possible.

What can go wrong on closing day?

On closing day, you want to prevent unwanted surprises. Here are a few common pitfalls and what you can do to stay on track.

Pitfall: Document errors

Prevent: Carefully review your loan documents, disclosure forms and other paperwork related to your new home. Ask questions if you don't understand any details.

Pitfall: Mortgage delays

Prevent: Your lawyer prepares the mortgage documents, though your lender may provide some of them. Make sure your lender completes and delivers the documents and mortgage funds by the deadline. Your lender should get their instructions to your lawyer well before closing. Sign the documents 2 days before closing and bring them with your down payment to close the deal.

Pitfall: Last-minute inspection issues

Prevent: Sometimes the final walk-through reveals last-minute problems. If this happens, your real estate agent and the seller's agent should resolve them. You can ask the seller to fix the problems or negotiate a credit on closing fees. Or, the seller's lawyer might withhold funds paid until the repairs are complete.

Prevent financial delays

Financial problems may cause mortgage delays. Here are a few ways you can keep your finances healthy for closing day.

Avoid changes to your credit report

Any changes to your finances, such as a new car loan, could delay your closing date. Even small changes could impact your credit rating and cause delays. A lender could withdraw their offer. And you'd have to secure another mortgage, which could take weeks.

Stay at your job

Changing jobs means a change in your income and credit reportOpens a popup. In the weeks leading up to closing day, it's best to keep your income the same or higher. And stay where you are until you close the deal on your home. For instance, going from full-time to part-time isn't the best idea. Lenders prefer a steady and consistent job history. Talk to your lender if you do get a new job.

Avoid applying for new credit

Wait to buy a new car or finance a wedding, at least for now. Any new debt or large purchase may cause unwanted financial problems. Contact your lender if you already applied for new credit while getting your mortgage. The more transparent you are about your finances, the better.