Review your Loan Estimate
Your Loan Estimate is a document your lender will send to you after you’ve applied for your mortgage. This will outline all of the estimated costs and fees of your proposed loan.
Review this document carefully and discuss any questions you may have directly with your lender. You’re about to borrow a big chunk of money, so be sure you understand what you’re getting into.
Order an inspection
Once you’re under contract on your home-to-be, your due diligence clock starts ticking. In most cases, you’ll have 14 days to order any inspections.
You’ll want to have a full home inspection conducted, and maybe one or two specialized inspections as well. This can mean bringing an expert specifically to look at the HVAC system, to seek out signs of pests, to inspect the electrical system — or anything else you’d like someone to take a closer look at. Your real estate agent can make recommendations if there are common specialized inspections in your area.
Order an appraisal
In most cases, your lender will handle this for you. If they haven’t mentioned anything about a home appraisal, feel free to ask about it just to ensure that the ball keeps rolling. And on that note, be prepared to present any additional documents the lender may need from you to finalize your loan approval once the appraisal has been completed.
“There’s not a lot of clarity once that appraisal is back and your file goes to underwriting,” says Kain. “With a lot of lenders, that may be the first time a human goes through the whole file; things are so automated now. Just be ready to fetch additional tax documents, income or job-related documents, that kind of thing.”
Lock in your interest rate
If everything is moving along according to plan and you’re feeling good about your Loan Estimate, go ahead and lock in your interest rate with your lender if that hasn’t already been done.
Order a survey
Property surveys aren’t always a must, but they can be a good idea if there’s any ambiguity as to where your property lines fall.
If you’re buying acreage, planning to put up a fence, or considering eventual additions to your home, then you may want to order a survey and have this valuable information before a neighbor comes knocking in complaint of boundary violations.
Understand your payment options
Buying a house involves multiple money transfers. Between your earnest money, down payment, the funds when your loan comes through, and any credits you may be due from the seller, it’s important to understand exactly how Dollar Amount A will safely reach Proper Account B.
Scams can and do happen, so talk through this process carefully with your agent, lender, and settlement services provider (this could be a title company, the lender directly, or a real estate attorney) to make sure there is no question as to where your money is going and how it’s getting there.
Not all states require the use of a real estate attorney for closing, but using one is always an option and can help ensure the transaction goes smoothly.
As a first-time homebuyer, if working with an attorney isn’t required in your state but will help you feel more comfortable with the closing process, don’t hesitate to ask your agent for a recommendation.
