1. Complete Your Mortgage
Generally, if financing is involved there will be a financing contingency period negotiated into your contract. If so, having negotiated a financing contingency as part of your contract, you will have a specified amount of time (as written into the contract) to secure a loan to purchase the home. It is important to respond quickly to each and every request made by your lender with high priority during this time to ensure a quick and easy loan approval prior to closing. Any delay of providing paperwork or information requested by your lender could result in delay of closing. Check out our page on Financing a Home to read more.
2. Schedule a Home Inspection
We strongly suggest having a home inspection prior to purchasing a home, this will help discover and defects with your new home before you make the purchase. It is important to schedule the home inspection immediately after the contract is accepted by the seller and will allow you to address any defects or issues discovered during the option period. If you would like to learn more about home inspections and what is entailed in a home inspection, check out our Home Inspections Page. For your easy reference see List of Home Inspectors. If you have any questions please contact us.
Three Weeks Before Closing
1. Schedule An Appraisal
Check with your lender, typically an appraisal is ordered by your lender and is reflected as part of the closing costs on the buyers side (rather than charged to the seller). Your lender or bank will require an appraisal by an independent party in order to finalize the mortgage. The appraisal determines whether the seller’s asking price is higher or lower than the actual value of the home. It is wise to have the appraisal ordered early in the event the results of the appraisal require a renegotiation of the contract.
2. Title Research
This step is performed by the title company selected during contract negotiations. The title company you selected is responsible for issuing title and providing title insurance, so the title company will make sure there are no issues with the property such as any outstanding mortgages, unpaid taxes and restrictions that may impact your ownership of the home after closing.
3. Schedule Movers
We recommend scheduling a mover at least three weeks prior to your move-in date. You should also start packing up your belongings at this time. Below resources at top of page you will find a few moving companies that our clients trust and recommend.
Two Weeks Before Closing
1. Get Quotes for Homeowner’s Insurance
As part of the financing process, your lender will need to know all the information related to your homeowner’s insurance. It’s a good idea to shop around and compare quotes before committing to any policy. Don’t forget that flood damage isn’t covered by your typical homeowner’s insurance policy, so you’ll need to purchase this separately. You will complete the purchase of your homeowner’s insurance at closing.
2. Secure a Home Warranty
A home warranty covers appliances (e.g. dishwasher, oven) and major mechanical systems (e.g. HVAC, plumbing). Typically, the seller sets an amount they will pay for a home warranty and the buyer selects their own home warranty company within that price range. To learn more about how home warranties work, check out our Home Warranties Page.
3. Schedule a Time for Closing
In anticipation of closing, your Team Sadler Realtors’ agent will contact all parties involved in the sale to arrange a time for closing. This meeting is most often held at the offices of the title or mortgage company. Make sure that you will be present for the entire closing; it can take over an hour to complete.
One Week Before Closing
1. Schedule and Attend a Final Walk-Through
The final walk-through typically occurs one or two days before before closing and is an important step you shouldn’t overlook. It gives you a chance to make sure all repairs have been made by the seller and there are no last-minute problems with the home before closing.
2. Plan Your Move
During the complicated process of completing your home purchase, it can be easy to overlook the little details you will need to complete soon after closing, like changing your address and transferring utilities to your name. Be sure to review our New Homeowner’s Checklist and make a plan for moving in to your new home. If you have arranged for a sellers lease back, you will have more time to complete these steps. Follow these helpful tips for a stress free move.
3. Obtain Certified Checks
You will need certified funds or a cashier’s check from your bank in order to pay final closing costs to the title company and seller. Make sure you have plenty of personal checks as well in case any last minute payments are needed at closing.
The Day of Closing
This is the time when the last papers are signed and once the deal funds, the home is officially yours! Typically, both parties meet at the title company at different times to sign all required documents. As a buyer, you will have quite a bit of paperwork to sign – especially if you have taken out a loan to purchase the property. Closings typically take an hour or more, so be prepared for a long morning or afternoon.
What to Bring to Closing
- Photo ID
- Certified checks from the bank
- Copy of homeowner’s insurance
- All documents related to the sale of the home (inspection reports, copy of contract, etc.)
Once you and the seller complete the closing process and the title company has received the funds, you will receive keys to the property and the process is complete! Congratulations, and don’t forget your New Homeowners Checklist.
CONTACT TEAM SADLER REALTORS
If you are ready to buy or sell a home or just have general questions that you would like to have answered, please give Team Sadler Realtors a call. One of our qualified agents will be happy to assist you. If you prefer, fill out the form below and send us you questions and one of our agents will respond in 24 hours, typically much less. We look forward to hearing from you!
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- Financing Contingency – A contractually agreed upon time to settle your financing needs, which is usually two to three weeks from contract commencement. If you are able to obtain financing during this time, you can back out of the contract with penalty other than the loss of the Option Fee.
- Option Period – The amount of time negotiated in the contract in which the buyer can cancel the contract for any reason at all. Typically, the Option Period is from 7 to 10 days, what ever is specified in the contract and the buyer pays a nominal fee (e.g. $100 – $200) for the right to cancel.
- Sellers Lease Back – There are circumstances where sellers can’t move out immediately after closing. This situation usually leads to a lease back option, where the seller pays rent to the buyer, who is now the new home owner. There are many reasons for a lease back, such as the seller is moving due to a change of job and not quite ready to move, the seller is having a new home built and it is not quite ready, needs more time to prepare moving out and the list goes on. If you find that you are in this situation, be sure that lease back agreements are put into writing in order to protect both rights of the buyer and seller.