further debt.
Another way to delay the closure is by changing jobs or switching positions. These actions are highly questioned, especially if they lead to your primary income no longer being based on a monthly salary but on commissions or performance bonuses. The unstable nature of a commission-based income might threaten the deal.
10 THINGS TO KNOW WHEN CL W WHEN CLOSING YOUR HOME FOR THE FIRS R THE FIRST TIME
#1. Open an Escrow
The first step to closing the deal and unlocking the front door of your own house is to open an escrow. An escrow is a contractual arrangement in which a third party receives and disburses money or documents for the primary transacting parties, with the disbursement dependent on conditions agreed to by the transacting parties. Escrow, on average, will last approximately one month. During that time, the third-party handled transactions on both the seller's and buyer’s behalf. For example, if you provide an inspection as a buyer, you deposit funds to the escrow account. Costs of this service are to be negotiated beforehand. Be conscious of the escrow company’s fees. Some contain unexpected fees you might only become aware of during payments because they’re hidden. Understand how to escrow company fees before agreeing.
#2. Lock in the Interest Rate
The price for a mortgage loan is typically expressed as “points” paid to get a specific interest rate. Points are essentially prepaid interest, so the more points paid, the lower the interest rate. One point equals 1% of the loan amount.
97
Powered by FlippingBook