Three Weeks to Close: Buyer Side
One of my favorite stops online each day is Brip Blap, a site devoted to “personal finance, wealthbuilding and the journey to financial freedom.” Besides the financial aspect, their articles expand to other thought-provoking ways to improve your life. Today’s post - again about finance - discusses what would happen if you have less than three weeks to live.
Like the writer, I would have to look beyond meeting my immediate desire to cash in all my assets and just play, explore, and have fun because I also have a family to consider. As I thought about the whole three weeks concept, though, I wondered what three weeks can do for one related to real estate - sometimes the busiest days in a person’s life! So today, we look at three weeks before closing through the eyes of a buyer.
Week One
*Buyer wrote a contract for a house last week and is now in full binding, ready to close in three weeks.
This week, the home inspection. Find a reputable home inspector - your agent can make recommendations, but also check with the local Better Business Bureau to investigate whether there have been complaints against the inspector. Try to be present at the inspection because you’ll get tips on home maintenance and can see first-hand if there are problems with the house. You’ll need to pay the inspector at the time of inspection, so be ready to pay from $200 to $500 depending on your location and size of house.
After the inspection, your agent will work with you to write a Repair Inspection Contingency Removal in which you’ll address with the seller any required repairs of replacement problems. The seller may counter-offer the proposal, based on the amount of money set-aside in the contract for repairs and whether there are major system problems.
Keep in touch with lender providing any necessary financial information (pay check receipts, tax forms, etc.) to get the loan to underwriting.
Week Two
Continue to be in contact with lender to answer any questions, provide information requested.
Home being appraised - appraisal is ordered by the lender. Once the appraiser goes to the house, it may take 3 to 5 days for the appraisal to be complete.
Follow up with Realtor to see if termite inspection, septic inspection, etc. complete. Be sure you read over contract again to make sure all contractual obligations are being met. Also follow-up on repairs being made.
Week Three
Clear to close comes to mortgage lender! At this point, closing instructions via the loan package will be sent to the title company or closing attorney. From there, they will be able to put together the settlement statement which will be sent to your Realtor. Go over these numbers with your agent and/or your lender to make sure there are no unexpected costs that weren’t disclosed. Make sure they are legitimate charges.
Schedule your closing time and location if you haven’t already done this.
If you have to bring money to the closing, make sure that it’s in the form of a cashier’s check because most title companies will not accept personal checks, especially if it’s for a large’ish amount (over $100).
Go on your final walk-thru a day or two before closing to be sure the repairs have been made. The seller should provide receipts at closing. At the walk-thru, you’ll look to verify that no major changes have occurred since you first wrote the contract for the home (for example, no holes in walls, no missing light fixtures).
Attend your closing and be prepared to sign your name about 127 times!
Receive the keys to your new house!
These are just highlights of about 1,000 other things that can happen during the three weeks to closing. Tomorrow - three weeks through the eyes of a seller!
