Congratulations! You're under contract on a home! On this show Robert and Dave talk about what not to do when you're closing a home. They also take on all those confusing terms and acronyms that you'll hear throughout closing. This show is a great listen for any homebuyer!
What Not to do when closing a home:
- Make any big financial purchases or changes
- Obtain a car lease
- Switch jobs last minute
- Have poor communication with your lender
- Fail to communicate with your lender about large gifts from family or withdrawals from your IRA for a down payment
Closing terms to know:
- COE: "Close of Escrow"--the day you offically become a homeowner.
- EMD: "Earnest Money Deposit"--the funds the buyers put down to prove to the sellers they are making a serious offer.
- Contingencies: Certain criteria that must be met before closing on the home. If they are not met, a buyer may back out of the deal without losing their EMD.
- Title Insurance: Offers protection against any unexpected competing claims on the home.
- CD: "Closing Disclosure"--a document the buyer is required to receive three days perform closing. It summarizes the buyer's loan terms and all fees the buyer needs to bring to closing.
- Cash to Close: The total amount the buyer needs to bring to closing to seal the deal.
- Prorations: When certain fees and taxes are divided between the buyers and sellers, like property taxes.
- Credits: These add wiggle room to closing costs to help cash-strapped home buyers seal the deal.