Closing

What needs to be done in preparation for closing?

There are a number of items that will need to be completed successfully between the time the purchase agreement is accepted and the actual closing. Each one is critical to the completion of the process. Your Agent will assist you with any questions that you may have and will keep the process moving along on the appropriate timetable.

Financing. Although the Buyer was pre-approved for the necessary financing prior to the purchase agreement, that doesn’t guarantee that they will get their home loan. If something changed, for example a change of employment status, they may no longer qualify. If there is a contingency for financing, their should be a deadline for the Buyer’s financing to be in place. Once completed, that contingency will be removed from the purchase agreement.

Home inspection. Most Buyers will require a home inspection as a contingency in the purchase agreement. The lender may require an inspection as a condition for funding of the loan. Work with the Buyer to schedule the inspection as soon as possible. Upon completion, you will be notified if there are any issues that need to be addressed. Your Agent will advise you of your options if this occurs.

Appraisal. The Buyer’s lender will require that the property is appraised for current market value. This protects the lenders interests and you will receive a report done by a professional with local market knowledge.

Title search. A title company will conduct a search of all necessary records to make sure that the title to the property is in good order. The results of this search will be used to offer title insurance. Also, it is not unusual to find liens or lawsuits that must be settled prior to transfer of the title.

Lender statement. If you have a home loan or home equity loan, you will be required to provide a statement from the lender that will be used at closing regarding the disbursement of funds.