The process of buying and selling a home is not an easy one, but as you prepare for a clean closing, just know that the end is near and you will soon be living in and enjoying your new home. Before you can enjoy though there are a few important tasks that need to be done before you can start life in that new home. Here are a few tips to keep in mind before closing to make sure your new home purchase goes exactly as planned.
Ensure your down payment and closing costs are prepared and ready to go.
A bank draft or a certified cheque is required by your lawyer when a large amount of money is changing hands. The money needed will cover your legal fees and whatever is left of your down payment. Ensure that your money is easily accessible so that you can retrieve it within a few hours or a few days’ notice. If you are withdrawing from an investment account or an RRSP, move the money as soon as you can to avoid delays.
Have the paperwork ready.
Any legal transaction involves an obscenely large amount of paperwork to be read and signed, so be prepared. Documentation will also be needed by your mortgage lender to verify employment and income. Make sure you have available tax returns, T4’s, a recent paystub and anything else that is relevant to your type of employment. Your lawyer will also require this information and will need you to read over and sign documents throughout the closing process.
Keep your credit right.
This basically means don’t make any other large purchases during the weeks leading up to and after closing for the home. Always remember, your mortgage approval is based on your financial situation at the time of your application - not weeks before or after. Try not to make any significant changes to your cash flow during this time – so no switching jobs, getting a new loan or buying a car right before closing. Big changes in your financial situation could void your mortgage approval.
A home purchase is not always an easy cut and dry transaction, so expect the unexpected – typos on the agreement, a screw up at the bank or a page that was accidentally not initialed. To prepare for these unexpected delays, you should try to schedule the closing for earlier in the day. And don't wait until the last day on the contract to close. Above all, just remember these things happen and simply roll with the punches.