In previous blog posts, we’ve explained the real estate closing process in New Jersey and the various costs that home buyers have to pay. Today, we’ll talk about some of the things buyers can do to prepare for closing day. But first, a quick definition is in order.

Definition: You can think of the “closing” as the final step in the home purchasing process. It’s when you will sign all of the finalized documents relating to your mortgage loan and the transfer of the property. It’s also when you’ll receive the keys to your new place.

How to Prepare for Your Closing Day

As a home buyer in New Jersey, there are some steps you can take to help ensure that your closing process goes smoothly. Much of the paperwork will be done by other people, such as a title or escrow professional. But home buyers can be proactive here as well. Here are some steps you can take.

1. Start saving for closing costs and other expenses.

It’s never too early to start putting money aside for your closing costs, and the more you can save the better. Most home buyers in New Jersey have to pay closing costs of some kind when they purchase a house or condo. You’ll receive an estimate of these costs when you apply for a mortgage loan, as well as a finalized list shortly before the scheduled closing day. Getting a head start on the saving process can help ensure that you’ll have the funds needed to close.

2. Try to keep your financial situation stable.

When you’re being reviewed for a mortgage loan, it’s generally a good idea to keep your financial situation “static.” That’s probably not the best time to change jobs, make a large bank withdrawal, or open a new credit card account. All of these things could change you financial picture and lead to additional underwriting steps. Granted, some things are beyond your control. But whenever possible, try to keep your financial situation stable until you’ve completed the closing process.

3. Follow up on any additional paperwork requests.

Some home buyers in New Jersey sail through the closing process with no issues whatsoever. In other cases, the underwriter or escrow officer might request additional documents to complete the process. The closing steps can vary slightly from one borrower to the next, because each borrower is unique. If you receive any requests for additional documents (such as a letter of explanation for a certain bank withdrawal), follow up as quickly as you can. This will help ensure that everything stays on track for closing. Remember, everyone is working toward the same goal — to finalize the purchase of the home.

4. Let your loan officer help you.

In a typical mortgage transaction, the loan officer is the primary point of contact for the borrower. Your loan officer will keep you informed throughout the various stages of the process, and will let you know if any additional information or paperwork is required. At NJ Lenders, our loan officers are very proactive and will do everything within their power to ensure a timely closing.

So those are some of the steps a home buyer in New Jersey can take to prepare for the closing process. Please contact us if you have mortgage-related questions, of if you’d like to get pre-approved for a loan.