For most people, buying a home or condominium is the largest purchase they will likely make in their lives. When purchasing a home, do your homework the same as you would when buying any large item.
If you buy a large appliance, you would check different stores on prices and to see who may be having a sale. You would compare prices, warranties and other related charges before making your decision where to buy. The same principal applies when you buy a home.
Shop for lenders. Check your retail banks, mortgage brokers and mortgage lenders to compare interest rates and points. Go online to compare also. You should complete your “shopping” within a 14-day time period. That is the amount of time credit bureaus allow.
It’s always a good idea to compare prices from at least three different lenders. One of the largest closing costs is the administrative fees lenders charge. You can always negotiate with each lender until you settle on the one offering you the best price.
Compare prices on the disclosure forms. Lenders are required to provide borrowers with disclosure forms. The forms will list all the closing costs. This disclosure form should be given to you at least three business days before your scheduled closing date. Go over the forms, and use the time to compare prices for the third-party vendors (next paragraph).
Shop for third-party vendors. Most people rely on the lender to suggest third-party vendors such as appraisers, title companies, settlement servicers, surveyors and pest control. Again, shop around to get the best rates. When dealing with a lender, let the lender know you are shopping around, the lender may offer you a discount. When checking with third-party vendors, make sure the rate they give you can not be changed.
Schedule the closing at the end of the month. You’re required to prepay accrued interest from the closing date to the end of the month. By closing near the end of the month you’ll only have to pay a few days worth of interest.
Lock in your interest rate. If you suspect interest rates will be rising before you close or if the market is volatile, lock in your interest rate. Typically you can lock in an interest rate at 30-day, 60-day or 90-day before closing. Check what the charges are, as a 90-day will cost more than a 30-day lock-in.
Think of hiring a real estate lawyer. A qualified Denver real estate attorney can review your documents and help protect you such as removing any harmful language and/or requirements. The attorney will also review the title report to verify there are no obstructions and will explain and review all the closing documents. Remember - you are signing very important legal documents on a large purchase that can affect your entire life. You don’t want any ‘surprises’ later.
For more information regarding real estate closings, or any other real estate matters, contact our Denver, Colorado real estate lawyers at 303-618-2122. You can also visit www.gantenbeinlaw.com. Gantenbein Law Firm also practices Tax Law, Business Law, Probate Law, Wills & Trusts, Estate Planning, Elder Law, HOA Defense, Foreclosure Defense and Credit Repair and Dispute.