Buying Steps 37-38: Getting Financially Ready
Step 37
One of the things the mortgage underwriter will require you to do at some point during the underwriting process is to set up Homeowner’s Insurance, so it’s better to get a start on this task now. For most people, your home is the biggest purchase you will ever make, and you want to make sure it’s properly insured.
Our biggest piece of advice is to shop your homeowner’s insurance around because rates can vary dramatically we recommend starting with a local professional.
Ask us for an updated list of recommended Insurance providers.
Have your homeowner’s insurance policy go into effect the day BEFORE you close on your new home. That way, if (heavens forbid) your new place burns down while you’re at closing, you’ll be covered. Also, be sure to get proper documentation from your new homeowner’s insurance company to provide to your underwriter; they will require proof of insurance before they approve you for your loan.
Questions? Contact us at andi@andidyer(dot)com or 360-734-6479.
Step 38
Now that we’re almost at your closing date, it’s time to get your down payment ready! Remember that in addition to the down payment you will need the closing costs.
If any of these funds are going to be gifted to you from a family member, you need to let your Mortgage Lender know right away so they can get approval from the underwriter for the funds.
Discuss with your Lender how to handle the down payment and closing cost funds.
About one business day before your closing date, your Mortgage Lender will email you a Closing Estimate of the amount of money needed to close as well as the wire transfer instructions (read the wire fraud email). Unfortunately, the total amount usually is not available further in advance as the Title Company needs to receive final figures from both your Lender (if utilizing a mortgage) as well as the utilities. You will send these funds (or bring a check) by the instructions of the Title Company.
Call your bank now and find out what you need to do to make a wire transfer. Most of the time you have to go into the bank personally to initiate the wire transfer. Also, find out what their cut-off time is for wire transfers. Usually, it’s around 4 pm. That means you’ll have to do the wire transfer by that time the day before closing for it to go into the title company’s account on time. Once you’ve done the wire transfer, email me, the Mortgage Lender and/or the Title Company so we can make sure the Title Company receives the funds.
At closing, any overage/extra money you paid will be refunded back to you at the very end of the closing via a check (typically for utilities).
Questions? Contact us at andi@andidyer(dot)com or 360-734-6479.
