Well the time has come for you to purchase a home. There are many steps that need to happen before you actually get the keys to the house. This article will take you through the process all the way to the closing process. If you can think of it as steps up to your closing. With each step completed ,you are that much closer to actually owning the home. Here are the ten steps
1, Find the home you want, place an offer, offer accepted. You need to provide some money to secure the offer, this is called ernest money. This held and credited to the closing costs,
2. Title check is done by the escrow company to make sure this property is clear of liens and the seller is the legal owner of the property.
3. Homeowners insurance is always needed to secure the mortgage. Bring proof to escrow.
4.Disclosures of any property defect. Inspection of the property to make the home is in good
order, letting you know of anything that may need fixing. Pest inspection is a good idea. Any other contingencies that was covered on the signed offer should be cleared now.
5. Appraisal of the property is done by the institution you are getting the loan from. They want to make sure the house value is at least the amount of the mortgage. They also check other properties sold in that area as well to give a fair appraisal. If it doesn’t appraise for the amount of you mortgage either the professional realtor provides more comparisons or “comps” or you pay the difference.
6.Loan Approval is the formal approval by the lending institution of the amount of the mortgage.
7. Seller will need to payoff their existing mortgage prior to transfer. This is done in at the escrow company, at time of closing.
8. The cashiers check you need for the agreed upon closing cost.
9.Signing all the papers, transfers, to complete the deal
10. You receive the key to your new home on the date designated in the contract, once this sale has been recorded at the recorders office in your state.
All the paperwork you will need to keep in a safe place. Your accountant will need that information for income tax deductions. You made it to the top and the home is legally yours. Good Luck.
By: Frank Eckert