Tips On Closing & Funding In Sedona
And The Verde Valley
If you're a reader, go early!
The Title Company usually does a good job of explaining the high points of the paperwork. However, some tough consumers still want to read everything in the closing docs. If you are a reader, you might want to ask the title company if you can show up an hour early to closing to read the package (you should still keep your original appt with the Title Company for them to explain the paperwork and to complete signatures).
Make yourself available!
It's tough to set up closing appointments because the title company is usually very busy. So, try to make sure that you keep your schedule as flexible as possible. If closing is delayed, then you might have to change your appointment.
Compare the estimate to actual costs!
Take your "Good Faith Estimate" to closing. This is a good way to compare your actual loan fees to those that were quoted to you by your Lender. Make sure that your total loan fees don't exceed your most recent fee quote from your Lender.
Show me the money early!
- Hopefully, your Lender can provide you with your required funds to close amount at least a couple of days before closing. If you are getting a cashier's check, this will give you time to get to the bank early. Take the cashiers check with you to closing.
- If you are wiring funds for closing, you should wire the funds to the title Company before closing. It might take up to 24 hours for the wire to go through.
- If you are selling another home before buying in Sedona, you can ask the first Title Company to wire your closing funds to the second Title Company. This is a convenient way to get the funds over quickly for the purchase.
Take your personal checkbook to closing!
If there are any small accounting changes at the last minute you might have to come up with some extra funds.
Two key documents to review more carefully at closing!
Obviously all of the documents you sign at closing are important. Many people key in on the following two because they contain a lot of the meat of the deal.
1. The HUD1 Settlement Statement - This usually the first form that is explained at closing. It contains your closing costs and your escrow deposit and prepaid items.
2. The Note - This describes your loan terms (ie. Fixed rate or adjustable, amortization period, whether or not you have pre-payment penalties etc.)
The end of month myth!
No matter what you've heard, it IS NOT advantageous to close toward the end of the month. You're going to start paying interest on your home immediately, regardless of when you close (Most loans are set up to have the Buyers prepay interest through the end of their closing month. Then the Buyer's first mortgage payment is due 30 days after the end of the closing month).
Closing at the end of the month can be stressful and increase the chance of mistakes because the Title Companies are overwhelmed with business at the end of the month. So, it's actually better to close at the beginning or toward the middle of the month.
Don't rush closing!
In your initial offer, try to give enough time for the inspections and loan process to occur. Even if you are paying cash, you still should give about three weeks to complete inspections and any needed repairs. You should give about 4 weeks to close if you are getting mortgage financing. Everyone wants quick gratification, but it pays to give yourself enough time to go through the pre-closing process. It means less stress and a better chance of getting all the inspections, repairs, & mortgage loan done correctly. ]
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