Buying a home is one of the biggest moments in your life. However, it doesn’t need to be the most stressful. Andrew Fortis, a real estate lawyer and founding partner of Hummingbird Lawyers LLP, provided some tips and experience to help make your big day a little less stressful.
“With good planning, stress can be reduced and smooth closing and moving can be accomplished,” Fortis noted. “There are a few tips that can reduce the stressfulness of your closing.”
Bridge Financing
Bridge financing is a temporary loan option that is designed to fill bridge the time between the sale of your current house and when your new property is purchased. It enables the borrower the opportunity to use the equity in your current home to pay the down payment on your next home.
“Too many times I see clients who have scheduled the closing of their purchase on the same day as the closing for their sale,” Fortis said. “If possible, this should be avoided.”
He continued, “Firstly, on closing day the purchase cannot happen until the sale has been finalized. In most cases, sale money is needed to close the purchase.
“That, along with many unpredictable things that can happen on closing day, is a good reason to bridge financing to avoid any delays.”
With seeking bridge financing, Fortis explained that it allows the closing of the real estate purchase to happen well before the sale. In this time, you are able to clean, paint, do repairs and move in before closing.
Make sure your insurance is taken care of
Insurance for your home, and everything in it, is crucial as a homeowner. It is never just a universal plan, but instead can be individualized to meets a homeowners needs. The coverages available under many plans may help to repair, help pay or replace your home and belongings if they are damaged under certain circumstances.
“Once your take over the title, you are now responsible for the home, and what is inside it,” Fortis noted. “You want to make sure that you are covered in the event of a fire or flood, for example.”
Fortis’ own practice and personal experience has helped him to learn just how stressful closing can be. “I encourage all future buyers and sellers to speak with their legal counsel and discuss closing day and what can be expected,” he said. Seeking legal advice can help you make the correct decisions and reduce some of the stress of a sometimes overwhelming life event.