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Your First Home: Step 7-Close

We got through the home inspection, that was intense. What’s next? Why, title and appraisal of course! We are in the home stretch; you can do this. As the lender is finalizing the mortgage, they are doing a little bit more digging: appraisal to confirm the value, survey to confirm the boundaries, title to verify ownership, and title insurance.

Appraisers will look at the home and comps to determine what they think the home is worth and relay this to you and the lender. The lender will only write a loan for the home’s appraised value, so if there is a difference between selling price and appraisal price-buyer and seller have to come together to cover the gap. Therefore, it is important to create a win-win situation, both parties have to work together at times.

Survey is to determine where the homes boundaries are and are not. You would be surprised how many times a neighbor’s fence may be on your property due to boundaries of each property being forgotten over time and various homeowners. This will also let you know of any easements and any other things you should know about your soon to be property.

Title refers to who owns the property. While everyone calls where they live “their home” it may actually be in the name of one spouse, both spouses, or even other family members and trusts. It is important to have clear title before title goes into your name. A search and insurance are needed to make sure title is good to go.

Now, I know we got preapproved like three blogs ago but at this point in the loan process the lender will check your finances one last time before issuing the loan. It is advised to not make any major purchases prior to purchasing your home and keep your bank and credit snapshot looking pretty and mortgage worthy. Wait until after the transaction to get the new appliances and order the movers.

Here are some things to make sure you have ready to go/do as we get to closing:

1.      Settlement Statement, Certified Funds, and Evidence of Insurance

2.      Transfer of Utilities and Movers

It is the day before closing, yes, we are finally here. Be sure to do your final walk through. By now, if you requested any repairs-you should see them done. Next day is closing day. Woo! What is happening on this day?

1.      Finalize your mortgage

2.      Pay the seller

3.      Pay your closing costs

4.      Transfer the title from seller to you.

5.      Make arrangements to legally record the transaction.

Goodbye renting-you are officially a homeowner! Welcome to the beginning of your wealth and future! Join us next week as we protect the investment we just procured.

Orange, CA-TRREG DRE#01843673-RP100 DRE#02059058-P:714-831-1800-E:info@theresultsrealestategroup.com-W:www.theresultsrealestategroup.com-Facebook - Twitter - Instagram - LinkedIn
Reference: Your First Home by Gary Keller
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Location: Orange, CA, USA

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