Archives for January 2014

Step 4 of Home-Buying Process: All the Tasks to Complete Closing

4.1  Escrow and Title Company
This is Step 4 of the Home-Buying Process.

This is Step 4 of the Home-Buying Process.

Once an offer is agreed upon and signed by both parties, an escrow account will need to be started.  You, the buyer, will need to give the earnest deposit to your broker, who will take it to the title company (or seller’s Qualifying Broker) that is designated in the purchase agreement.  The title company will start an escrow account by depositing your earnest money and issuing a receipt for it.

A title company will obtain the payoff amounts for existing loans and calculate prorated taxes, liens, rents, insurance policies, and utilities.  They will arrange for title insurance policies, pay off the costs and liens as agreed in the purchase contract, and close the transaction.  The will also arrange to record the transfer of title at the courthouse.

Your escrow will close when the county recorder notifies the title company that the deed has been changed from the seller’s name to the buyer’s name.

4.2  Inspections

A professional inspector is recommended to inspect the house you are buying.  Even if the house looks OK, it is highly recommended to have an inspector go through to do a more detailed inspection.  You will want to know as much as you can about the house you are buying.  Depending on how your contract is set up, you may be negotiating with the seller to pay for any major repairs that are required.

4.3  Appraisal and Survey

Your mortgage lender will designate an appraiser to determine the value of the home.  Since they have a large stake in the property you are buying, they will want to make sure it is worth the value that is being paid.

A survey is also usually ordered to determine the boundaries of the property.  This is to make sure that there are no encroachments on the property that were not disclosed.

4.4 Final Processes

Depending on the contract, lender, and house, there may be other things done before closing.  A lender can request final paperwork to make sure everything on the application is still current, insurance can be ordered, other inspections such as pest inspections, and more.

4.5 Walkthrough Before Closing

You should visit the home 1 to 2 days before closing to make sure that the repairs were done and the house is in the same condition as when you put the offer in.

4.6   Attend Closing

This is the final step to buying a house.  You will want to bring your purchase agreement, your settlement statement, a calculator, a pad of paper, mortgage commitment (if any), and any other paperwork that pertains to the house.

Congratulations, you now own a home!

*Just remember, this list is a rudimentary list of the steps to buying a house.  It is meant to familiarize you with the process of buying a home so you are not left in the dark.  There are several more details and processes that happen in the actual purchase of a house that a Realtor can help you with.  If you have any questions, contact a Realtor who you trust to get you started in the right direction.  We would be happy to assist you if you are looking for a good real estate professional.

Photo Credit: “Red Death” by Tiberiu Ana on Flickr. CC Licensed.