Now that you’ve found the house that’s the right fit for you, Chris Wolgamott and Kati Harper walk us through the closing process.
If your offer is accepted, the agent will send the paperwork to a lender for approval.
Harper recommends getting a house inspection done at this point. Although they aren’t required in Kansas, she recommends them to find any issues that might have been missed. They can prepare you for any repairs to request or to be prepared for after you own it. This can be useful, because it is a last chance to find issues with your home before closing.
Harper said agents usually have inspectors they recommend, but buyers can find ones that are reputable by checking reviews and the Better Business Bureau.
After the inspection is the time to negotiate with the seller and request repairs.
A final agreement will be determined. You will then complete your mortgage application.
What documents and information do you need to have ready?
- Proof of income. Wolgamott said to have pay stubs for at least the last 30 to 60 days to show your proof of income.
- Tax records that show proof of employment over multiple years.
- Statements or balances in your savings account showing proof of the money you have saved, and the length of time it’s been saved.
- Nontraditional credit information. Wolgamott said that, in certain cases, banks will look at this information if a credit score is lacking. This includes a more complete picture of a potential client, including information like proof of rental payments.
- Forms of identification.
After this, an appraisal from the lender is done. Appraisals determine if a bank will approve the loan on a house. Banks can require repairs to approve loans.
You, as the buyer, are responsible for paying for an appraisal and it is nonrefundable. Harper said this is why it’s important to have an inspection done first to make sure no surprises come up.
After the appraisal, you will finish any paperwork necessary with your lender before closing day. Harper said at this point, it’s important for buyers to stay in close contact with their lender to make sure all the closing paperwork is finished on time.
Harper said the day before final closing paperwork is signed, you will do a final walkthrough of the house to make sure repairs have been completed and the house is in the agreed upon condition.
On closing day, you will sign the final paperwork and get the keys to your new home. Harper said, in some cases, a seller can request to move out after closing, but she doesn’t recommend it. Damages or other complications can occur while the seller is moving out.
Closing costs will vary based on your loan, but Harper said for an FHA loan, she often sees closing costs around 3.5% of the house price.
Harper said closing usually takes 30 to 45 days.
After that, the house is yours.
This is part 3 of an email course from the Wichita Journalism Collaborative that guides first-time buyers through the process.
You can sign up for the course at https://wichitajournalism.org/newsletters/.
Story by Sarah Beauchamp/Photos by Selena Favela