Four Steps to Prepare for Closing Day in California
Closing day is the last step for homebuyers in their loan process. All their paperwork gets finalized and the deed of the property is officially transferred to the new owner. Here are four steps to help California homebuyers have an easy closing day!
1. Start saving!
One of the best ways California homebuyers can prepare for their closing day is to start saving funds early. It is likely that homebuyers will have to pay closing costs on closing day. There are two types of closing costs: nonrecurring closing costs (which include one-time fees that homebuyers pay only at the time of purchase), and recurring closing costs (that buyers will have to pay continually after their loan closes). Homebuyers in California can typically expect to pay closing costs between 2% and 3% of their home’s purchase price, depending on price, discount points, transfer taxes, and other factors.
2. Maintain your credit.
Once homebuyers have been pre-approved, they can begin actively looking for a property. It is important that homebuyers avoid these actions after getting pre-approved to ensure that they don’t disqualify themselves from their pre-qualifying price range, potentially lose their contract, or add lengthy delays and additional paperwork to their closing process.
3. Respond timely to all paperwork requests.
Lenders have a spread of documents that homebuyers need to fill out in the front-end process like bank statements, tax records, and employment verifications. There’s also paperwork that needs the homebuyer’s attention later in the loan process in the underwriting phase. Communication is key for homebuyers working with their lender during the underwriting stage. Lenders may request additional documentation, and timely responses will ensure that the homebuyer’s loan is able to fund faster.
4. Keep in touch with your local lender.
JVM’s team of highly trained mortgage analysts are homebuyers’ go-to people for any additional questions about their loan—even after it has funded. They will take the time to walk through every scenario and help homebuyers take the next steps that work with their financial goals. If homebuyers have any questions about their loan, their loan’s servicing, or even about their refinancing options, they can reach out us here, or contact us by phone at (925) 855-4491 or by email at [email protected].
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646