The more you know, the smoother it will go. So here’s what you can expect.
Once you’re under contract, i.e. both parties have agreed to the terms and signed the Agreement os Sale (AOS) , we will work together to fulfill the terms of the contract, clear the contingencies and reach an on-time settlement.
Timely follow-up is necessary to see the home purchase through to home ownership.
We’ll be scheduling the home inspection (HERE) and work with your lender to ensure the appraisal and financing proceeds as it should.
During this time we’ll do what needs to be done to clear any contingencies (written into your contract ). If you are buying a condo, you will also be reviewing the condominium declaration, bylaws, rules and regulations of the condo association.
The settlement coordinator will contact you for further information to prepare the closing documentation, title insurance and transfer of title.
Your closing date (as stated in your AOS) should be scheduled on your calendar. You’ll want to arrange time off from work if necessary. Do be aware that there are circumstances that may require a change in date. The mortgage company may have trouble meeting a tight deadline (closing period of less then 45 days) while meeting the new requirements of the Consumer Finance Protection Bureau (CFPB).
Ten days before closing, you should lock in your interest rate with your lender.
To ensure that you completely understand the terms and unique features of your loan, the new CFPB rules require that you have 3 business days to review your Closing Disclosure. This will come from your lender. If you do not receive your Closing Disclosure 3 business days before the scheduled closing date, the closing will have to be postponed. Note: This 3 day review period may not be waived.
If changes need to be made to your Closing Disclosure after you have received it, the 3 business day clock may start over, depending on the change.
You’ll receive wiring instructions to transfer the balance of your down payment and closing costs to the title company in time for settlement.
A word to the wise: There have been scams pulled recently where the scammers will email buyers with fake wire instructions in an attempt to divert your money to their account. For this reason, I suggest that you confirm the wiring instructions by voice with your settlement officer before actually sending the funds.
The closing will generally take no more than 2 hours, more if there is a glitch. You might want to arrange for the entire day off. The location is ideally going to be at the offices of the transfer agent, as he/she will have access to office resources if needed. Closing can also be arranged at any of our offices.
Ideally, you will attend the closing in person. There are many documents requiring your signature and if there are any hiccups, they will be best addressed in person. Should you be unable to attend for any reason, the title officer and mortgage lender can arrange for a Power of Attorney. This needs to be arranged a couple of weeks in advance, as any later may delay settlement. We strongly encourage clients to attend closing.
The pre-settlement walk-through (HERE) will be scheduled as well.
You’ll need to arrange for utilities and insurance. If you’re planning on moving in the same day as settlement, please allow an extra couple of hours after the scheduled close of settlement before arranging for the movers to arrive – allowing for any delays alleviates a stressor that doesn’t have to be there.
A word of advice from personal experience; I wish when I’d moved into my own home that I had delayed the move-in a couple of days and had the floors redone. In hindsight, those few days of overlap would have saved me a huge headache. If your circumstances allow, I’d encourage you to arrange for (or d.i.y.) things like flooring, painting, even window replacement before moving in. Those jobs are relatively quick to do in an empty house.
After all the paperwork is signed, at the very end of closing, you will receive the keys to your new home!
If you have questions, please give me a call: 215-767-3839.
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