Purchase Contract Acceptance Procedures

 

Congratulations on the purchase of your home! Now that we have found your home, the following information will guide you through the final closing procedures.

In order to accomplish a successful closing, it requires team effort from all of us. Some of the Team Players involved beside you, our Client are:

 

Roy and his Team

· The Sellers

· The Lender

· The Title Company

· The Inspection Company

· The Appraiser

· The Underwriter

· The Listing Realtor

· The Surveying Company

And the list continues...

 

We coordinate the parties involved and create a successful closing. As long as all the Team Players cooperate and do their respective jobs; we have a smooth closing. We will follow up with all parties involved periodically and communicate to you the results. We first solve the challenges as they arise, and will not bother you unless we need your input. You can contact me by phone or email if you have any questions during the process. However, it is best if you first contact my Assistant for follow up.

 

I have not made loan application yet-when do we apply?

If you have not made formal loan application, you need to contact the lender immediately for an appointment. The contract calls for a specific date in which to apply by. We normally have you contact the lender prior to our initial meeting but just in case, please apply as soon as possible. 

Through trial and error, we have eliminated lenders that do not perform in a timely manner. You are welcome to compare any lender of your choice and to help you compare, we have found the following web site a very useful comparison tool.

Mortgage Lenders recommended:

When will we do the inspection?  

Inspections are performed according to the contract datelines. You select the professional inspector and we will contact the listing agent for the appointment. Most inspections last from 2 to 3 hours. We highly recommend you be at the inspection with the inspector.  

The inspector will point out any items that are not operational, or are of concern to the inspector. The Inspection is mostly visual and the inspector would also inspect the major components of the home. When purchasing a resale home, please remember it is not a new home and some minor items may need your attention. Stay focused on major components that are not operational or need further evaluation.  

After the inspection is completed we formulate an inspection letter to the Sellers, if necessary, stating items of concern.  The inspection notice itemizes those items that you are requesting the seller to repair, replace or a monetary credit by the Sellers as part of satisfying the contingency. The Sellers may respond positively to your inspection letter, they may to repair a few items or none at all. It is up to you to consider the response and then consider the response accordingly.

 

When will they do the appraisal?

The appraisal will be ordered through your Lender. The Lender will contact the Listing agent for the appraisal appointment. Once the appraisal is completed, it usually takes 2 to 3 days to receive the final answer on value. If a VA appraisal is involved, it may take longer. The appraisal normally verifies the PURCHASE PRICE. The majority of the time the value is the same as the chase price. The new 2009 HCCV government rule on appraisals being ordered through an independent entity may cause delays and issues depending on the appraiser’s experience and knowledge about the neighborhood.

 

When will they do the survey?

They will just show up to the property and do their survey. They do not call for appointment unless they cannot access the back yard. Their job is to locate the "improvements (property) on the Land" on your lot and the distances to property lot lines. This is not an official survey. Your "survey" is actually called an "Improvement Location Certificate" or ILC. If you require a pin survey, the cost is normally $1,500 or more. ILC cost approximately $250-350.

I received the "Title Commitment policy", what is it?

·Click here to learn more about Title Insurance by Land Title Guarantee Company.

 

Will we have a Walk-Through prior to closing?

The purchase contract states that you have the right to a walk through prior to closing. Just notify us within a week prior to closing to set up the appointment. At the walk through, we verify items repaired resulting from the agreed inspection notice. Receipts will be available at or before closing.

 

When do we contact our Insurance Agent?

Contact your insurance agent as soon as possible. Please provide your insurance carrier the pertinent property information for your insurance quote. If they need more details, call us and we can provide the needed information. Have the agent contact your lender with the annual premium amount so that the premium can be added to your closing cost for closing.

 

Please note the contract states you obtain hazard insurance for your purchase.  Please contact your preferred insurance company and get a quote prior to the insurance contingency date on the on contract.  I recommend you obtain a "CLUE" report.  The CLUE report may note if the property had major prior claims, which may affect your quote for the hazard insurance.

· How do I obtain a CLUE report?

 

When will I know how much money I need for closing?

Once you get loan approval, the Lender will forward your “loan figures” to the Title Company. The Title Company then combines the “real estate” figures including sellers pay offs, HOA cost, tax assessments and prorated cost to derive at an accurate HUD form. The lender then approves the final HUD.  The approved HUD by the lender entitles you to receive the funds needed to close. Once reviewed by us, we will forward the figures to you immediately.

 

Where do we close and who will be at closing?

We normally close at the Listing agent's office or at the Title Company. The Title Company will perform the closing and will also close in behalf of your Lender. I will be at the closing with you. The Listing agent may also attend the closing.

 

What if I have a conflict with closing time-can we pre-sign or use a power of attorney?

Yes, you can do either one. If you pre-sign, you will normally sign at the Title Company. When all parties have signed, then the disbursement will take place and you become the owner of the home. If you need someone to close on your behalf via "Attorney in Fact", or “Power of Attorney (POA)” then that person you select will have to sign all documents as you would and assume the responsibility for the closing. You must use the Title Company’s POA form, no exceptions except if provided by your attorney. Please verify with your lender of your intentions to close via a POA.

 

What kind of check do we need for closing?

Bring a cashier's check, certified funds or wire the funds to the Title Company prior to closing. If you are bringing a cashier’s check as noted, have the check written out to your name(s) for the exact amount. You will then endorse the check to the Title Company.

 

What else do we need to bring to closing?

Bring proper ID such as a driver’s license to the closing. If the insurance agent gave you the policy, bring the policy. If you have sold another home prior to this closing, bring the certified HUD settlement of your closing and a copy of your warranty deed on the sale of that property.

 

When do I make my first mortgage payment?

Loan payments are paid in arrears. The first of every month you make payments to your mortgage company. That payment makes the interest and principal payment for the PRIOR month. For example, if we close before the end of the month, you pay the interest to the end of the month and the first of the following month your first mortgage payment is due. If we close on the 25th of May, you pay interest to the 31st of May at closing, and your first mortgage payment is now due July 1st.

 

When do I get the keys?

Typically, at closing you receive a set of keys to the Property. The contract states when possession of the home will take place. At closing, exchange phone numbers to contact the Sellers in case of any changes. If the Sellers want to give you keys at possession time, please make arrangements for keys.

 

When do I switch utilities?

It's best if you call the gas and electric companies prior to closing and ask them to switch utilities to your name and to have a final reading of the meters. Do not turn off the utilities. Do the same for phone, cable, trash service (if outside of HOA dues) and the like. We will handle the water and sewer conversion and final water bill through the Title Company. The Title Company escrows sufficient funds from the sellers to pay the final water and sewer bill if applicable.

· Click here for Xcel Energy for gas and electricity

· Qwest for phone service

How do I contact the US Postal Service for "change of address" forms?

· Click here for change of address at the Post Office.

I know this may be asking for too much, but how about the Colorado Motor Vehicle Registration-locations, manuals, etc.?

· Click here for Colorado Motor Vehicle Division Handbooks/Manuals.

 

Commentary by Roy Lopez:

As your Realtor, we orchestrate the closing and review any information prior to closing. Other parties will normally do the same and update us on any changes or modifications to the closing. Delays can occur at closing which are out of our control. We ask you to be patient if that occurs. The delays will be solved with the least amount of inconvenience to you. My professional experience in assisting over 1,800 families successfully close on their homes has been a great teacher. Every challenge has a solution!

We hope this information is useful to you, and that you refer us to your friends or relatives should they need real estate assistance.

 

We want to thank you for selecting us to assist you

with the purchase of your home!

Your Realtor for Life

Roy Lopez