Tips on How to Avoid Problems when Closing on a House
Avoid Problems when Closing on a House
Here is a tip that can help any buyer, regardless of loan program, can use to avoid problems when closing on a house. If not followed, this can lead to many frustrations and headaches especially with the finish line on the home buying process in sight.
Verification of Funds when Closing on a House
- Earnest money deposit: Underwriting will always need to verify this type of deposit. If you are a Realtor it is best to advise your buyer to pay by check for documentation
- Appraisal fees and inspections: This is still an important aspect even though this happens after a contract is signed. These are customary out of pocket expenses that should be paid by check or credit card when the option is available
- Never pay with cash or money orders: These are usually not acceptable forms of payment for verification. It is always good to remind clients about this fact at the beginning of the transaction as verification of funds deposited is another critical aspect when closing on a house.
Underwriting guidelines are more stringent than ever and are changing on a daily basis. Don’t make a small oversight at the beginning of a transaction that will be a source of problems when closing on a house.