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closing on my first house today. any advice?

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closing on my first house today. any advice?

Old 04-19-2007, 09:02 AM
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Default closing on my first house today. any advice?

just like the subject says, I'm closing today on my first home. I'm excited and nervous all at the same time. any tips or advice or anything?
i'm also wondering if anyone might have an idea as to why the money that they told me to bring is actually higher than the amount written in my good faith estimate. I understand it's an "estimate", but still....
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Old 04-19-2007, 09:11 AM
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Default Re: closing on my first house today. any advice?

1) Check for extra added fees related to the financing and put your foot down. Also understand that certain things, like property taxes, are pro-rated, and make sure you dont pay them twice either.

2) Do the closing after your walk through. Make sure the house is clean as it is supposed to be.
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Old 04-19-2007, 09:14 AM
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Default Re: closing on my first house today. any advice?

yeah, did the walk through a week or so ago. nothing major found, just small stuff like holes in the new screens and what not.
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Old 04-19-2007, 09:16 AM
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Default Re: closing on my first house today. any advice?

Congratulations!!!

Read and understand your HUD 1 settlement statement. The Hud should be prepared in advance of the closing, so they should be able to fax or scan a pdf top you ahead of time. Question any fee you do not agree with.

The actual costs could be higher for a few reasons. Actual fees incurred maybe higher than estimated. For example, if an appraiser had to complete a follow up visit, that is an additional expense. All the expenses will be itemized for you.

Pre-paid interest. If your GFE assumed a end of month close, it did not assume any pre-paid interest (Not sure what the rules are around GFE preparation and assumed closing day). However, closing today, you will owe 11 days of interest at closing. Your first payment should be due June 1, and cover the 30 days in arrears (the month of May). However, the bank is still owed the 11 days remaining in April, and this is paid at closing.

I am sure others will chime in, but that is my quick .02 off the top of my head.
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Old 04-19-2007, 09:25 AM
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Default RE: closing on my first house today. any advice?

coores14 - 4/19/2007 9:02 AM

just like the subject says, I'm closing today on my first home. I'm excited and nervous all at the same time. any tips or advice or anything?
i'm also wondering if anyone might have an idea as to why the money that they told me to bring is actually higher than the amount written in my good faith estimate. I understand it's an "estimate", but still....
Coores,

There are a few things that may make your money "out of pocket" higher than the good faith estimate. I can't remeber who wrote before me, but he was correct when talking about pro-rated taxes and so forth.

The main reason that your out of pocket expenses are higher is most likely due to your prepaids (ie. prepaid insurance). Most insurance companies will require the first year "up front" on the insurance premium. So if your lender estimated your insurance to low that is normally a good factor as to why you need to come out of pocket more.

Hope this helps, and good luck.

Matt
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Old 04-19-2007, 09:32 AM
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Default Re: closing on my first house today. any advice?

Also keep in mind that it is not uncommon for escrow companies to estimate high, then give you a refund.

That's exactly what happened when we bought ours recently, and I've had it happen before as well.

Don't COUNT on that money coming back, but it does happen from time to time.
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Old 04-19-2007, 09:33 AM
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Default Re: closing on my first house today. any advice?

thanks guys. The pro-rated tax thing makes sense. As for the insurance, I've already cut the checks for the premiums and they actually were less than what the estimate was (thank God). I guess I'll just have to wait and see. The one problem is that, since this is my first time, most of this is totally new to me. I don't fully understand how everything works, so if anyone decides to pull one over on me, who am I to know?
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Old 04-19-2007, 09:53 AM
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Default Re: closing on my first house today. any advice?

Congratulations! There is no feeling in the world quite like owning your own home.
The suggestion to review the HUD-1 in advance of the closing is a good idea. Are settlements conducted by escrow officers or by attornies in Florida? In any event, ask about anything that you do not understand. If you have your GFE in hand, you can compare it to the actual HUD-1 to see where the differences arose. If you can't get the HUD-1 ahead of time, take your GFE to your closing and do the comparison then. These folks don't get paid until you sign your docs; you're paying them for this service. So take your time, ask questions, and be satisifed that you understand.

As Rich said, they usually include a pad to cover anything unexpected. Every time I've closed I've received a refund check later. IIRC, this last time it was about $1300.

A few other pointers on a slightly different note:

DO NOT look at the number that represents the total of your principal and interest payments over the life of your mortgage. It will give you a heart attack.

Make sure your loan has terms that you can live with. If you've chosen some kind of ARM, review the terms very carefully to make sure you understand them.

At some point, you'll wake up in the night and think, "holy cr@p!! What the heck have I gotten myself into?!?!?!?" This feeling is normal. It will go away.

Happy moving!
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Old 04-19-2007, 10:01 AM
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Default RE: closing on my first house today. any advice?

wow...first house and it's in key west!
living the dream

feels good to be a homeowner, although the only thing you really "own" is the downpayment and the appreciation...you won't be building any appreciable principal equity for a year or two

one word of advise i wish someone had given me...
once you are written a mortgage, credit offers will come FLYING in, be careful with that
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Old 04-19-2007, 10:25 AM
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Default Re: closing on my first house today. any advice?

Coores14,

First, congratulations - this is one of those days you will never forget. Second, I have been in residential mortgage banking/lending for 21 years and will say you have been given some very good information and advice here. By now,
you most definitely should have been given a HUD-1 Settlement Statement to review prio to the closing. One other potential
source of discrepancy between the "GFE" and "HUD" is your election to purchase an Owner's Title Insurance Policy. Given that time is short for you today, please feel free to PM me with any questions. I will give you my office and cell numbers and will be happy to answer any questions and give any advice before youu enter the closing. Good luck.
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Old 04-19-2007, 10:34 AM
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Default Re: closing on my first house today. any advice?

SSheila - 4/19/2007 8:53 AM

DO NOT look at the number that represents the total of your principal and interest payments over the life of your mortgage. It will give you a heart attack.
On the other hand, they might have on hand some ammonia inhalants for you in case you faint instead. Either way, not so far to fall, as you will be sitting down in the first place.


Congratulations! Best wishes for lots of happy times there.
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Old 04-19-2007, 11:00 AM
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Default Re: closing on my first house today. any advice?

thanks to everyone so far for the advice. As far as I know, I have not received the HUD-1 thingy ya'll are talking about. All that has happened is that the closing agent called yesterday afternoon to see if I could close today. With barely 24 hours notice, I was scrambling to cough up the money that they needed. I had it set aside, but in an account that required more than 24 hours to transfer it over and make it accessible as "cash". Luckily, I was able to scrape enough together to make the cashier's check happen, but my everyday account is LOW until all the transfers clear. I had the option to close tomorrow or Monday, but I've waited long enough and they've pushed it back enough times that I said "screw it", let's do it.
I plan on taking all of my original documents with me, such as the GFE and what not, so that way I am able to compare notes. Hopefully, they will also be able to explain any discrepancies. We shall see.
T-minus 3 hours.... and counting...
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Old 04-19-2007, 11:41 AM
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Default Re: closing on my first house today. any advice?

Coores -

You have Real Estate Brokers (ME) you have Mortgage Brokers (Them) and then you have your closing attorney. The HUD-1 is prepared by your closing attorney this most likely will MAKE NO SENSE TO YOU! Not saying you are stupid, but if you have never seen one before it can be somewhat confusing.

I know from my buying life there are times when you won't see the HUD until you get to the closing table. Just ask your closing attorney to go over it with you, they should be able to shed some light on it. Also if your REALTOR (if you used one) is there with you he/she should be able to walk you though it also!

Not really answering any questions, just letting you know that you will see the HUD at the attorney's office. Hopefully you have a relationship with you attorney so you can trust them, the attorney I use I have been working with and sending busines to for a long time, especially his para-legal so I CAN 100% TRUST THEM!

Let's see some pictures!!

Matt
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Old 04-19-2007, 11:43 AM
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Old 04-19-2007, 08:49 PM
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Default Re: closing on my first house today. any advice?

I hope you hired an attorney
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Old 04-19-2007, 09:08 PM
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Default Re: closing on my first house today. any advice?

ya'll will be pleased to know that everything went smoothly. I am now an official homeowner. I got the keys and everything. pretty exciting! all of my fears about the closing costs being higher than the GFE were no big deal. It was simply my GFE being estimated low on some costs. No big deal, i didn't feel as if I was being ripped off or anything. Needless to say, I'm just pleased to have it over with. Thank you all for the support and the advice and I will post pics very soon. I took some tonight when we went over there to open the door and let the dogs run around for the first time.
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Old 04-19-2007, 09:10 PM
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sorry, double post...
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Old 04-19-2007, 09:21 PM
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Old 04-19-2007, 09:29 PM
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Default Re: closing on my first house today. any advice?

Great news on your house..........Now go fishing this weekend
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Old 04-20-2007, 09:22 AM
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Default Re: closing on my first house today. any advice?

just be ready to sign sign and sign some more!!!!! most lawyers will explain some of the stuff to you, but if you dont understand ASK!!! I just moved into my third home and the people that bought mine were a major pain...........congratulations on your new home
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