Steps to Getting Keys
I will open title at the selected title company. Title will take care of all deed transfers, HOA transfers, title commitment, and paperwork. Two checks will be needed right away, one for the earnest money typically 1% of sale price and the other is to the sellers for the option fee, which is typically $100-$250. Both amounts will be credited back to you at closing. The option fee allows you 10 days to back out for whatever reason. This is the time period that inspections will need to be done, and repairs negotiated.
Your lender will require numerous documents from you, Please do not be offended by what the mortgage company will ask you to provide. Because of the previous mortgage crisis across the country, the investors are requiring more information and the guidelines are more stringent. Please be prepared that lenders and their underwriters may stress you out. but the payoff is so worth it.
Your lender will order an appraisal. Your lender may have you pay up front for the appraisal which should be around $375. Typically this takes about 20 days to get the appraisal report. The home must appraise for at least the sales price. If it doesn't, 1 of 4 things can happen; 1) seller reduces sale price, 2) buyer pays original sale price 3) buyer and seller renegotiate or 4) contract terminates.
Home Insurance Policy
Your lender will require you to pick a home insurance company to hold your policy (this is different from your home warranty). The year policy will be paid at closing and is a part of your closing costs.
Home Warranty Company
Most sellers will pay for your one year home warranty. Home warranties cover many repairs of systems within the home such as appliances, plumbing, HVAC, etc. I will send you a list of home warranty companies to research. I do recommend making sure “Improper Installation” is covered as that is a common loop hole for companies not to cover a repair. Schedule utilities: I will send you a list of utility providers, request turn service a week before closing to be turned on on closing day.
By law this disclosure has to be provided by the lender and accepted by you 3 days before closing. It is a breakdown of debits and credits, compares the actual charges to the good faith estimate, and it will tell you the amount you need to bring to closing. If this isn’t received 3 days before (not counting Sunday) then we will need to push the close date. You can either wire the closing funds needed to the title company the day before closing or bring a cashiers check to the closing table.
Day before Closing
We will schedule a walkthrough, either the day of closing or the day before to make sure the home is in the same condition as when you last saw it and to make sure repairs, if any, were completed.
Bring your drivers license and funds for closing! Plan to be there about 1 1/2 hours. After signing it typically takes about 1-2 hours to funded” which means you get keys and are happy new homeowners! Usually it is best to move in the day after closing.
Tools For Buyers
Find your new home with up-to-date listings. Save and rate your favorites!
Save your searches and review daily email alerts sent direct to your inbox!
Make smart decisions with local market reports. Subscribe today!
Browse featured listings in your area. Sort homes by price, location and more!