Closing Smoothly

If you are among the many people who have purchased a new home during the summer and expect to close within the next few weeks, it is crucial to follow some very important advice until the closing.

Your mortgage lender has approved your mortgage based on the last credit information they used. Do not hinder a reversal by making changes in your credit. Monitor your spending judiciously. Delay new purchases and spending other than your usual living expenses.

Do not buy anything with your credit card. by making large purchases on your credit card. It may skew your qualification.

Do not increase your credit limits. Wait until after closing. Increasing your credit limit before closing to purchase furniture or other items, even if you won’t finalize the purchase until after closing, could possibly jeopardize the closing. Check our buyer guide about credit here.

Do not establish new credit. Offers for a new credit card in your mailbox may be exactly what will help to furnish the new living room. Do not initiate a new card until after closing.

Do not cancel existing credit. Even an empty card that you do not use could trigger and change your credit should you decide to cancel it. Wait until after closing.

To help make your next transaction as smooth as possible, review these useful tips.
Provide the following to your escrow team:
• The completed and signed Earnest Money Agreement (EMA). (Be sure the EMA is legible.)
• All addendums to the EMA.
• A commission verification form.
• Phone numbers, email addresses and/or fax numbers for your clients and/or the lender
they are using.
• Any additional insight or information regarding your customer(s) that may help make the
process go smoothly the day of closing, such as your customer(s) need for a translator;
they are visually, audibly, or physically impaired; require separate signings due to an
unamicable divorce scenario, etc.
• Homeowners’ association contact information.
Other suggestions:
• Carefully review the title commitment. Should you have questions or
concerns regarding the document, contact your escrow team right away.
• Encourage the seller to:
– Provide payoff authorizations promptly.
– Review their state withholding requirements with their accountant (if applicable).
• Encourage the buyer to:
– Shop for the best homeowner’s insurance rates and options promptly.
– Notify your escrow team immediately should an issue or problem arise before
the closing date.
Always remember that while we will do everything we can to ensure that your customers have the best
overall closing experience, your escrow team is a neutral third party and cannot
represent the buyer or seller or negotiate on their behalf.

Alliance Title Co.