The search is over! You found a house and the sellers have accepted your offer. Does
that mean you can simply relax? Not necessarily. Here are some of the steps which must be
completed in a timely fashion if you are going to close on time.
Emails are Your Friend
Please check your emails at least once a day to make sure that you are not missing any information. We will be sending you contracts via email with embedded links to the corresponding contracts. These contracts are saved in the cloud and remain there until the your transaction is closed.
We recommend that you download these documents and save them into a folder on your computer or in your online storage.
Earnest Money Delivery
When you made your offer, you included a check for an earnest money deposit. This money will be credited to your down payment and other costs at closing. You need to ensure that the funds are already transferred into the checking account and available at the time you make the offer. The check will be deposited when the offer is accepted. This money is supposed to be from your funds (not from a loan), and a lender may ask for financial statement showing where the money originated. The check will be returned to you if your offer is rejected or if the seller counters your offer and you don’t accept the counter.
Lending restrictions have changed over the past few years. In order to avoid any problems, your home purchase team (lender, yours truly, appraisers and any other professionals) is working together to make a timely closing happen.
We are happy to forward all information to your lender, so please provide us with the correct contact info (if we don’t have that yet) so we can send everything to them.
Obstacles to a timely closing can be a delayed appraisal or other delays due to paperwork requests. Some of those things you can control, others not so much. One of the things you have control over is to disclose ANYTHING that could prove to be a problem:
- Do you have any judgements, unpaid bills?
- Are you planning a back to back closing for another property that you are selling?
- Is your financial or professional situation changing?
We recommending giving yourself a moving time buffer to be able to accommodate any closing issues. If you HAVE to be out of your current rental at a certain time and your closing is delayed, you indeed might be homeless for a few days. This can stressful and can be expensive. Let’s talk about any concerns and then we’ll just roll with the punches.
It’s a good idea to get this scheduled as quickly as possible. I recommend that you make every effort to be present during the inspection. This is a great opportunity to learn vital details of your new home. Bring the sellers property disclosure and be sure to get all your questions answered. Most likely you’ve already received an email with inspector recommendations and suggestions.
Because we have to provide access to you and your inspector to the home, it would be best if you could schedule the inspection at or after 1:30pm.
If you don’t already have a favorite inspector, we can send you the inspectors we’ve used in the past. Send us an email or give us a call. Let us know as soon as you schedule the inspection so that I can inform the listing broker. Some buyers also choose to do a sewer inspection. Always ask what the inspection includes as vendors services may vary.
I may provide the name or names of various persons or companies that provide the services needed to close on your home. Providing these references is only a service and does not constitute a recommendation. I do not make any representations as to the qualifications of the parties that you select to provide these services. It shall be the your responsibility to investigate and satisfy all questions as to the qualifications of the parties you select to provide said services.
You will be issued an inspection report that will outline everything that is right and wrong with the home. Discuss the items that you feel need to be addressed and possibly repaired in this home. Once that’s determined an Inspection Objection is written up and delivered to the Sellers Agent to present to his client. The seller then has the option to accept, reject or suggest an alternate (re)solution. Under certain circumstances, this would require new negotiations depending on how significant buyers objections are.
Note: Buyers objections should never be mindless “let’s see what we can get” objections because it can adversely affect the contract. Why? The market has changed, and lower inventory has increased prices and made multiple offers on homes commonplace. We have a sellers market in most areas. The seller might have received a higher offer than yours and kept it as a back up in case the sale with you does not go through. Asking for too many repairs will give the seller a chance to chose a possibly higher offer that was in back up position.
No action is required if you are willing to do any minor repairs noted on the inspection. The inspection period will end and you will be bound by the contract. If the repairs are more costly, you can ask the seller to complete them or renegotiate the price accordingly.
Your lender will also require an appraisal. If you have a VA or FHA loan, the property will have to meet the standards of the applicable agency. If certain items do not meet those standards, the seller will be required to make the repairs and submit to a follow-up inspection prior to closing. If the seller refuses, the contract will be cancelled and the earnest money deposit refunded. Conventional loans also require an appraisal but they do not have the same requirements for repairs as the FHA and VA.
Title Insurance Commitment
A title insurance commitment is provided by a title insurance company and guarantees that there are no potential claims against the property title that would threaten the buyer’s ownership. This is something every seller must obtain, but what many buyers don’t realize is that they will also have to provide a title insurance commitment. This assures the lender that the buyer has not done anything during the contract period (such as having a contractor conduct work) that could create a lien.
Most real estate contracts allow the buyers to walk through the property one more time before closing. This is not a time to look for old problems which should have been discovered by the inspector. It is a chance to make certain agreed upon repairs have been completed and that no new damage has occurred.
If I am representing you as a buyer, I prefer to do the final walk-through right before closing or late on the day before closing. Give me a call or send me an email to let me know what day works for you
Are you looking for an experienced Realtor to show you Colorado Springs homes for sale? Then meet Susanna Haynie. She is ready to guide you through the entire process of finding your dream home. Call or text: 719-321-0800.