Few things excite me more than seeing condo buyers make it to closing day. There are many steps to navigate before you get to the home stretch, and arriving there is a major accomplishment. Unfortunately, even when you almost own the unit of your dreams, obstacles and complications can still arise. The result is often last-minute delays that can create stress and (in worst-case scenarios) even derail your purchase before it’s completed. The good news is, it doesn’t have to be that way.
Whether you’re a first-time buyer or a seasoned condo investor, it’s never too early to start preparing to close. Here are my top six tips for ensuring that everything goes smoothly on the big day…
1) Choose the right lender
Lenders are known for requesting documents at the last minute, which can hold up the purchase process. One of the best ways to avoid delays is by working with experienced professionals who have a track record of reliability. When you speak with a lender, be sure to ask about their loan processing times—and any factors that could cause potential delays. While the big banks typically have well-established steps in place, don’t assume that smaller operations are less dependable. The important thing is to get a sense of what a lender’s underwriting process is like.
2) Budget for closing costs
When you’re buying a condo, it’s always wise to take a good hard look at your finances and determine what you can afford. Of course, I’m not just talking about the sticker price. Closing costs can make or break a purchase—and all too often, buyers aren’t fully aware of how much they’ll pay until they’re near the finish line. From land transfer taxes to legal fees to HST (if you’re a pre-construction investor), you should know your costs early on. Budgeting for them long before the big day arrives will help you close efficiently, and stay out of financial hot water.
3) Have all documents ready
The road to a smooth closing begins before you even start searching for a unit. One of the first steps you take should be collecting all potentially-relevant documents. From your bank statements and pay stubs to your tax returns, having these financial records close at hand can help ensure that you’re ready to comply with any lender requests that arise. To make sure that you have everything you’ll need, ask your bank if they can provide you with a list of items required during the mortgage application process.
4) Agree on a timeline for repairs with sellers
During a real estate transaction, negotiations often touch on repairs. If your condo purchase is contingent on the seller providing any fixes or improvements, it’s best to work out a clear timeline for having them completed. A lack of clarity could leave the seller scrambling to hold up their end of the contract—and that could prolong the closing process. Ideally, you should arrange for all repairs to be finished a few days before closing (at the latest). Use your final walkthrough as an opportunity to ensure that they’ve been done to your satisfaction.
5) Talk to your lawyer ahead of time
Before completing your condo purchase, there are a few things you’ll need to go over with your lawyer. First off, how do you want to hold title to your living space? Will you be its sole owner? Will you be living with a spouse who owns an equal share? You’ll also need to review all of your paperwork with legal counsel a few days before you sit down at the closing table. This is your time to ask questions, so be prepared to do so. Don’t forget to provide your lawyer with a set of keys to the house!
6) Get everything in writing
I hope the seller you wind up purchasing from is both honest and courteous. But the truth is, people aren’t always true to their word. Whether you’re agreeing on a move-in date or negotiating to have repairs done, be sure the specifics are well documented. The last thing you want is to find that those light fixtures the seller agreed to leave behind have been taken away, or that the cleaning job you were promised was less than satisfactory. Unfortunately, if you don’t have everything spelled out in your contract, you could be out of luck!
Ready to buy your perfect condo? I have the expertise to guide you through every step of the process—from submitting worksheets to closing the deal. Call or text to learn more: 416-500-5360 / Email: info@rashidnotash.com
