"CONTRACT ACCEPTANCE"
SELLER PROCEDURE
Congratulations on the sale of your home! Now that we have your home under contract, the following information will guide you through the final closing of your home.
In order to accomplish a successful closing, it requires team effort from all of us. Some of the Team Players involved with you, our Client are:
· Roy and his Team
· The Purchasers
· The Lender
· The Title Company
· The Inspection Company
· The Appraiser
· The Underwriter
· The Selling 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.
Do I still show the home after a contract is accepted?
We normally recommend that you continue showing the home to other prospective purchasers until the inspection has been performed and the Purchasers have made the loan application. If the Purchasers have other contingencies as part of the contract, we may recommend continuing to show the property until those conditions are met.
Do we need to keep the lock box on our door?
Once the inspection is performed, we still have the appraiser, follow up on items that may needs bids for replacement or repairs, and the final walk though. In other words, yes, you will need to keep the lock box on your home unless the buyers have totally completed their process.
When will they do the inspection?
Inspections are normally done within a couple of weeks after the contract is accepted. The Selling Realtor will contact us for the appointment and we call you for your permission. Most inspections last from 1 to 2 hours. The Purchasers and their agent will most likely be present. We recommend not staying for the inspection. Let the Purchasers and the Inspector rely on your "Sellers Property Disclosure". The inspector will point out to the Purchasers any items that are not operational, or are of concern to the inspector. After the inspection is completed and we have received the inspection letter from the Purchasers it is up to you to repair or replace at your expense those items in the inspection letter.
When will they do the appraisal?
The appraisals are done through the Purchasers Lender. The Lender will contact us for the appraisal and we will call you for the appointment. We normally discuss all of the comparable sales PRIOR to the appraisal with the appraiser. Once the appraisal is done, 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 in other words, the majority of the time, the appraised value is the same as the purchase price.
What happens once the Purchaser makes loan application and when will they approve the loan?
That depends on how much progress was made by the Purchasers prior to making the offer. A qualified Purchaser is one where the credit of the Purchaser is approved and they only need the appraisal and survey to complete the final loan approval. In real life, we normally receive a "Pre-Qualification" letter stating the Purchasers ability to purchase your home based on a preliminary credit and job history review. With the cooperation from the Lender, and depending on the progress of the Purchasers prior to the offer, the Lender should be able to complete formal loan approval within 2-3 weeks after the contract is accepted.
Will they notify me when the surveyor surveys?
They will just show-up to your property and do their survey. They do not call for appointment unless they cannot access your back yard. Their job is to locate the "improvements of the Land" on your lot and the distances to the lot lines.
Will the Purchaser have a Walk-Through prior to closing?
That depends on the Purchasers. They have the verbage in the contract and not follow up with a walk-through. We let the Purchasers decide and we notify you when they decide to perform a walk-through. Sometimes it's a quick notice prior to closing and that's one reason for the lock-box in case you are not home.
When do I make my last mortgage payment?
Loan payments are paid in arrears. The payment you make the first of every month, makes the interest and principal payment for the PRIOR month. So, if we close before the first of the month, do not make a mortgage payment. Should we close towards the middle of the month or later, do make the mortgage payment. Always notify the Title Company or us should you make a payment within a couple of weeks of closing.
When will I know how much money I get at closing?
We are getting closer to your bottom line once the Purchasers are approved for their loan. Once approved, the Lender will send their figures to our Title Company for the Purchaser's loan and combine them with your payoff and other related information to arrive at a bottom line number. The Title Company will figure the amount due to you at closing 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 Title Company. The Title Company will perform the closing and will also do the closing for the Lender. I will be at the closing with you. The Selling agent will be with the Purchasers.
What do I need to bring to the closing?
If any repairs were done, bring the receipts for the repairs or certifications. Unless other items were called for prior to closing, you only need to bring your drivers license or valid ID to the closing.
Will I get a check at closing, and what kind of check is it?
YES! I instruct the Title Company to provide you with a CASHIERS CHECK. We can also wire the funds to your designated account.
What if I am buying another home after this closing?
You can use the same cashiers check from the sale of your home to purchase the replacement home, or we can split the funds for the exact amount needed to purchase the replacement home with the balance to you. We will give you all the necessary paperwork for proof of sale on your home.
When do I give the keys to Purchasers?
Typically, at closing you give one set of keys to the Purchasers. The contract states when possession will take place. At closing, exchange phone numbers to contact the Purchasers in case of any changes. If you feel more comfortable not giving the keys at closing, we then make separate arrangements for giving keys to Purchasers. We can leave the lock-box with key on the door, and Purchasers can access when you agree.
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 the new Purchasers. 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.
Do you have a list of phone numbers for the utilities?
Click here for Xcel Energy for gas and electricity
How can we get a change of address form from the post office?
Click here for change of address at the Post Office.
How about the phone, whom do we call?
Will I receive any monies after closing?
If you had an escrow account with your lender, then the escrow is credited after closing. Your hazardous insurance should be canceled AFTER you move out of your home. The refund check will be sent to your new address. If you had an FHA loan with remaining MIP on your final loan payoff, you should receive a refund from HUD within 4-6 weeks after closing. Click here for HUD MIP refund list. Check with your insurance carrier for a refund for the remaining balance from your annual premium. Finally, since the title company kept an escrow amount (normally $100-$200) from your proceeds to pay your final water and sewer bills, then expect a refund check 3-4 weeks after closing. DO NOT pay your final water and sewer bill if you received it prior to closing.
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 1,200 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 sale of your home!
Your Realtor for Life
Roy Lopez