The moment you have been waiting for is almost upon you: you are ready to close on a piece of real estate. Purchasing—or selling—real estate is one of the most significant financial transactions that you will have in your life. It is critical that every step of the closing goes smoothly.
To that end, you should know some common mistakes that many people make during a closing. By knowing these errors, you can take measures to avoid them.
Mistakes that you can avoid
- Opening new lines of credit
New credit cards are tempting, but they can quickly derail a closing. Wait until after the transaction is complete to decide whether you should open another line of credit. Similarly, you should not increase your credit limit until after the closing.
- Lacking preparation
The better prepared you are, the faster and smoother your transaction will go. Long before the date of the closing, gather every bit of paperwork that you will need. Research the closing process and ask any questions that you have to your real estate agent, the title company and your attorney.
- Not working with an attorney
Many people mistakenly believe that they can handle a purchase or sale on their own, only to encounter a patch of legal trouble. A real estate lawyer can help you understand the law and explain your options to help you make the best decisions. In addition, your lawyer can advocate for your rights with the other party.
Now that you know these common errors, it is simple to avoid them. This will go a long way toward making your real estate purchase or sale fast and simple so that you can move forward with the next stage in your life.