After Contract Acceptance
Purchaser 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. I am always a phone call away. However, it is best if you 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.
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.
Click here for Quicken Mortgage.
How can I get up to the minute interest rate quotes?
Click here for up to the minute interest rate quotes.
What do I bring to the loan application?
Click here for a complete list of items to bring for the loan application.
What if we have less than perfect credit?
Click here for "Full Spectrum Lending-member of Countrywide Family".
When will we do the inspection?
Inspections are performed within the contract dates. You select the professional inspector and we will contact the listing agent for the appointment. Most inspections last from 1 to 2 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 stating items of concern to you and that you wish to have those items repaired or replaced by the Sellers at their expense. The Sellers may respond positively to your inspection letter, they may only want to repair a few items, or none at all.
When will they do the appraisal?
The appraisal will be done 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 purchase price.
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 of the Land" on your lot and the distances to the lot lines. This is not an official survey. Your "survey" is actually called an "Improvement Location Certificate".
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 make notes of those items repaired or serviced and get the receipts at closing.
When do we contact our Insurance Agent?
Contact your insurance agent at least a week before closing and give the agent the information on your home. 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 is paid at closing. Please note the contract calls for your checking the property you are purchasing through your insurance agent and obtain a "CLUE" report. If the property had major prior claims, it may affect your insurance rate.
When will I know how much money I need for closing?
We are getting closer to your bottom line once you are approved for the loan. Once approved, the Lender will then send the Title Company their figures for your loan and combine them with the Sellers payoff and other related information to arrive at a bottom line number. The Title Company will figure the amount due from you a couple of days after the lender transfers their loan figures to the Title Company.
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 do the closing for your Lender. I will be at the closing with you. The Listing agent will be with the Sellers.
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", then the person you select will have to sign all documents as you would and assume the responsibility for the closing. The Title Company will issue their own power of attorney for your designee and any other forms will have to be pre approved by the Title Company.
What kind of check do we need for closing?
Bring a cashier's check, certified funds or wire the funds prior to closing. If bringing a check as above, have the check written out to YOUR NAMES.
What else do we need to bring to closing?
Bring proper ID such as a drivers 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 HUD settlement 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 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 service to your name. Do not turn off the utilities. Do the same for phone, cable, trash service and the like. We will handle the water and sewer conversion and final water bill.
· Click here for Xcel Energy for gas and electricity
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 Team, 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 assisting over 1,200 families successfully close on a home 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