| What you don't see |
|
|
|
|
After the contract is executed, it is taken to the title company who is responsible for handling the process from receipt of the earnest money to the closing of the transaction. Once the title company receives the contract and earnest money they order a title commitment. This insures the buyer and the lender that there are no problems with the title of the home that may cause problems later. They also order payoff information, check on buyers insurance, confirm the survey is accurate, and also make sure that lender-required repairs are completed prior to closing. Once the lender approves the loan, closing will be set. At this point the title company compiles all the information into a settlement statement with all expenses and credits on it. A copy of the settlement statement is given to all parties prior to closing for review and to know what funds will be needed for closing. Any amount larger than $1,500 will need to be in certified funds. One hour is allotted for each closing so the buyer and seller can sign all the required documents. Once the signing is complete the title company faxes the documents to the mortgage company for funding of the loan. Upon funding, checks are printed (this includes Realtor fees, mortgage loan payoff for the seller, and any bills submitted for services/repairs on the home). This requires coordination between your agent, the sellers’ agent, the title company, and you. This now becomes the make it or break it stage where things like the termite inspection, survey, appraisal, and insurance are all concluded. The only item that takes time from you, the buyer, is insurance. I have two words of wisdom on this issue and they are “shop around.” I know that there are a handful of companies that everyone uses and you get comfortable using them, but if you shop around you may find a policy which is significantly less than your initial quote. For instance, if you get two quotes; one for $700 a year and one for $500 a year, the difference is only around $16 per month. But after 30 years, that small difference amounts to around $6000 dollars. The survey is a document that details your property lines and limits on it which will show how the house fits on your lot. It will also detail any easements, which are right of ways for the city. The city asks that you not put any permanent structure in the easement area. Should you place any, if the utility companies need to do repairs they can tear down/ destroy your structure and not be responsible for it. The termite inspection ensures your home does not have a termite infestation destroying your home. The appraisal is a document that gives you the current worth of your home which the bank uses to guarantee that you are not paying too much. When the day comes for closing, be prepared to sign papers for about 30-45 minutes. The whole process is relatively painless, I have seen people shaking from the excitement and I have seen jaws drop from the stack of documents they have to sign. I am pretty sure I have seen everyone flex their hands at least once. But after it is all said and done, you now own a piece of this great land you have sworn to defend. |
| < Prev | Next > |
|---|
