From Contract to Closing

September 15, 2008
RealtySoldSolution.com

Pre-Qualification Letter: Get your Finances in order, find a lender, order a credit report, determine a down payment. Get a written pre-qualification letter before calling your real estate agent.

Select a Real Estate Agent: A Buyer’s Agent will guide you through the home buying process, help you select homes that meet your search criteria, schedule showings, execute paperwork, And negotiate on your behalf.

Execute Purchase Agreement & Disclosures

Attorney Approval: The signed contract is submitted to all attorneys involved for approval by this date. A disapproval MUST be in writing also by this date.

Completion of Buyer Inspections: Inspections are at the expense of the purchaser.

Mortgage Application and Commitment: You have a determined number of days to apply for your mortgage (usually 5 days). The purchaser has until a specific date to receive approval in writing for a mortgage loan (Mortgage Commitment) The appraisal & credit report will be ordered at application.

Final Walk-Thru: The purchaser may “walk-thru” the property for a final inspection prior to closing, to be assured the property is in the same condition it was at the time of purchase contract.

Closing Date: Attorneys set the closing date. This is not always definite, due to scheduling with banks/attorneys/delays.

Closing Statement: The attorneys will notify their perspective clients of the monies needed for the closing and break down of distribution of funds.

Homeowners Insurance: Purchasers should notify their insurance company after mortgage commitment, prior to closing, with new information. Mortgage companies/bank attorneys will request proof of a one year paid policy binder.

Utility Activation: Once closing date has been CONFIRMED, the property usually has utilities that need to be changed over into the purchaser’s new name.

Reminders

PURCHASERS — Picture I.D. is required at all closings (Driver’s License/Passport)

CERTIFIED BANK CHECKS—Certified or bank checks are usually required, for down payment, and your attorney will request you also bring your checkbook.