You’ve decided you’re ready for a home, saved up your deposit, selected the property and applied for a mortgage. So, what’s next? The following steps are often the most emotional and intense, so it is essential to be prepared. You will need to be ready for any eventuality, such as your mortgage not being approved.
Get Approved For Your Mortgage
Your mortgage needs to be approved before anything can move forward. It can take weeks for your mortgage to be approved and finalized, so have patience. If your mortgage is not approved, you need to find out why. You may need to find a different property, save more for a down payment or reduce your debt.
Start Making Preparations To Move
Once your mortgage is approved, you should prepare to move in. Start packing early to make the process easier. If you are renting, give your landlord notice that you are leaving. Do not give notice unless you have been approved for your mortgage.
Ensure You Have Budgeted For Closing Fees
Understand the fees associated with closing. Ensure you have enough saved to cover these. If you have certain home loans, such as a VA loan, you may be able to save on some closing costs.
Understand The Closing Process
Closing is a lengthy process. Understand the different stages and be prepared for a lot of paperwork. Take a look at these closing tips from Hero Loan for more information and guidance.
Take Possession Of The Home
You can usually move in straight after closing and receiving your keys. The seller can request up to 60 days delay in giving up occupancy.
Keep Your Documentation Safe
Store all of your mortgage, closing and contractual documentation safely. Ensure you know where they are at all times. Invest in a secure, fire-proof safe for important documentation, and request digital copies.
Move Your Belongings In
Decide if you want to pay movers or rent a truck and do it yourself. Ask friends and family for help getting settled. Unpack the essentials you need for the first night first. Ensure you have some food and toiletries stocked at the property.
Start Paying Your Mortgage
You will start paying your mortgage after moving in on the date specified in your mortgage contract. Ensure you have sufficient funds in the account and check that the first payment goes through correctly. Contact your lender immediately if something goes wrong.
Look For Home Insurance
Insure your new home against theft and fire. Consider insurance on your mortgage that will help you pay in the event of a substantial loss of earnings. Choose a higher level of insurance covering any significant issues that need to be repaired in the home.
Update Your Address
Update your address with your employer, government bodies like the DMV and friends and family. You should also update your utility bills and any subscriptions.