CONGRATULATIONS!
Our mantra is "No surprises!" As we move forward to closing on your new home, here are a few steps for you to take to insure that this process is a smooth as possible.
Immediately upon acceptance of the sales contract:
If you haven’t already done so, make arrangements to submit your initial deposit to the escrow company handling your closing. Escrow deposits are usually made within 3 days after the accepted (effective) date unless the contract states otherwise.
Schedule your home inspection. You can choose any Home Inspector that you like.
This is the time to sit down with your lender and apply for your mortgage. Lock in your interest rate!! You are to apply for your mortgage within 5 days of the “effective” date (unless the contract states otherwise). Make sure that your lender has all the proper documentation needed for your loan application.
Normally required items include:
Current Pay Stubs (most recent 30 days worth of pay stubs)
Last 2 years W-2s and/or 1099’s if applicable
Tax returns for the past two years
Bank statements for the past two months
Investment account statements for the past two months
Retirement account statements for the past two months
Copy of driver’s license
Credit card to pay for appraisal
Touch base with your lender often
A note about your Home Inspection:
The seller must disclose anything that they KNOW about the home’s condition. However, there are items that the seller often times is unaware of. You have anywhere for 7 to 15 days (unless otherwise agreed upon) from the contract’s effective date to facilitate your inspections. Be sure to check your contract to confirm your inspection timeframe. Typical inspections take about 3 hours. This is your time to take measurements, pictures and really get to know your future home. Make sure you ask the Home Inspector any questions you may have concerning the home’s construction and condition. Take note of any areas of concern that your
Home Inspector notes during your inspection. Once you have a full report from your inspector, you will discuss the items of interest with your Realtor.
Once Inspection Contingency is removed:
Shop for you hazard/homeowners insurance. Make sure that the insurance agent is aware of your closing date.
Reserve your moving truck and/or schedule your movers.
At about this time, your lender should order your appraisal.
Two weeks before closing:
Touch base with your lender to see where you are in the process and insure that they have all information needed for your mortgage commitment.
Contact your insurance agent to set up your homeowner’s insurance policy and sign all necessary documentation in order for your policy to be in effect the day of closing.
Obtain a change of address package from your post office and begin the notification of address change process.
Keep in mind: If you are receiving funds to close from a retirement account, it may take up to 14 days for some banks to disburse your funds to you.
One week before closing:
Schedule to turn on all or transfer utilities.
Make sure that the funds that you need to close are ready and available. Keep in mind: Title companies do not accept personal or bank checks. Wire instructions will be provided to you by the title company handling the closing.
Verify that any repairs noted in the inspection addendum have been completed.
You will need directions to the closing company’s office and confirm the time the closing will take place.
Three days before closing:
If you have not already received it, ask the title company for a copy of the preliminary HUD (or settlement statement) for your review.
CD Disclosure Waiting Period: There is a new three‐business‐day waiting period after the delivery of the CD before lenders can proceed with closing.
Day before closing:
Along with your real estate agent, you will conduct a “walk-through” of the property. It is vital that the property is in the same condition as it was when you wrote your offer, ensure that the inspection items have been corrected as agreed upon.
Verify that the funds needed to close have been wired and received at the title company.
CLOSING DAY!:
Bring a valid photo ID and any additional documentation your lender may require (they’ll let you know in advance).
If you’re obtaining a loan, bring your spouse. If your spouse is not available, they must sign documents in advance.
Be ready to sign a lot of documents.
This is a very exciting time, relax and have fun with it!
