The Agreement and Deposit.
2 important things to keep in mind:
- Keep written records. In order to avoid misunderstandings along the way, all verbal agreements — especially counter offers and addendums – should be transcribed into written agreements and signed by both parties. Your agent will be your guide when it comes to drafting documents and supplying copies.
- Abide by the agreed upon timeline and deadlines. Each stage in the course of closing the real estate contract will have a designated time of completion in order to ensure negotiations move along efficiently and that neither party is in breach of the agreement. You will be kept updated and informed each step of the way.
The Closing Agent.
The tasks and responsibilities of the closing agent require specialized expertise. That’s why a title company or attorney will be assigned the position. The deposit will be held in escrow and in-depth research of the property’s recorded history will be undertaken in order to guarantee the title is free and clear of encumbrances. All new encumbrances will be properly added to the title. For example, often properties are subject to limits on certain activities such as building or parking. In addition, there might be recorded easements and encroachments, which affect various rights to use the property.
The Agreement, Escrow, Appraisals, Inspections.
Once the seller accepts your offer, you will have a licensed property inspector conduct an inspection of the property. If you have concerns about specific features of the home, such as the roof or potential mold problems, you will have the option to call in specialized inspectors.
The outcomes of the inspections will lead to one of the following actions:
- All inspections will be completed, with positive results, and the contingencies will be removed.
Or . . .
2) Subsequent to you and your agent reviewing the outcomes of the inspections in question, and if problems are found, you may decide to request renegotiation of the contract.
The Lender and Appraiser.
Keeping in touch with your lender is one of your most important responsibilities. If you haven’t heard from the lending representative for a reasonable period of time, make contact. You’ll need to know if there are any additional documents you need to provide in order to get your loan funded.
The lending institution will appoint a licensed appraiser in order to verify the value of the home. That value will be based on such things as square footage, comparable home sales in the area, building cost and so on. It’s always wise to contact your lender a couple weeks prior to scheduled closing, just to make sure your loan approval and funding is on track.
Association Approval, if Applicable.
Gated enclaves, condominium complexes and planned unit home developments require approval by the homeowners’ association. If you are buying a home within one of those private communities, your purchase will be conditional upon association consent. It will be your responsibility to request the rules, regulations, and any other important documents from the seller as soon as you have a written agreement to purchase. All application documents and a processing fee must be submitted to the association by the scheduled time. In addition, you might be asked to meet with the association in order to secure approval. If that is the case, make an appointment to do so as soon as possible. The closing agent will require a certificate of approval for recording with the title.
The Agreement, Escrow, Appraisals, Property Insurance.
Every lending institution requires the home loan recipient to have property insurance. Its value is based on things such as the property value and purchase price. Of course, shopping around is always wise when it comes to insurance, and the following suggestions can help s well:
- Specify a higher deductible. Usually, a big difference in your premium amount can be realized by increasing the deductible by even a few hundred dollars.
- Take advantage of insurance company discounts. Always ask an insurance representative about discounts. Most companies offer them if the insured bundles coverage for things like home, car and life. Other things that might give you discounts include smoke and CO2 detectors, security alarms, natural and man-made disaster deterrents and so on. Seniors are frequently eligible for discounts as well.
House,notland. Unless there is a chance the land your house sits on will be swept away by a flood or landslide, you will be wasting money by insuring it. That’s why insurance experts say, “Insure the house, not the land under it.”