In Illinois, the title company acts as the escrow agent for handling the closing. All parties will bring the closing documents and money to the title agent on the day of closing and the title company agent will handle closing the transaction. Sometimes the attorneys are affiliated with the title company and they will handle the closing which can take place at the title company, the lender’s office, the attorney’s office or the realtors office.
#2. Lock in the Interest Rate
The price for a mortgage loan is typically expressed as “points” paid to get a certain interest rate. Points are essentially prepaid interest, so the more points paid, the lower the interest rate. One point equals 1% of the loan amount. Locking in an interest rate with the lender insures the interest rate and costs associated with that rate will not change for a certain period of time. A rate lock protects the borrower from rising interest rates in the period between sales agreement execution and closing (often a month). If the buyer locks in a rate of 4.5%, she will only have to pay 4.5% interest even if rates rise while going through the loan application process. A rate lock is commonly good for 30, 45, or 60 days, though that time period can be shorter or longer. After that period expires, the buyer is no longer guaranteed the locked- in rate unless the lender agrees to extend it. This is why arranging a prompt closing is crucial.
#3. Have a Home Inspection
Making sure roofing shingles don’t fall off on the first day in your new home or the furnace doesn’t operate under 45 degrees is generally enough reason to have a home inspection.
Engage specialists to check the conditioning system, plumbing,
94
Powered by FlippingBook