The following information will help prepare the buyer for what you need prior to closing.
Obtain legal counsel to assist in the offer and to prepare and negotiate the Purchase and Sale Agreement.
Home Inspections are to be performed within a time frame noted on the Offer to Purchase (typically up to 10 days) and are at the Buyer’s expense. It is recommended that the Buyers also consider testing for radon gas, wood boring insects and lead paint (if built prior to 1978). If the premises are serviced by a private well, a well test for quantity and quality is also recommended and may be required by your lender.
Mortgage Financing Contingency Date: Please follow up with your lender prior to the contingency date if you have not received a written commitment from your lender with only conditions that you can reasonably satisfy. If the lender needs more time, then you need to contact your attorney or realtor about getting extensions.
Homeowner’s (hazard) Insurance: A binder from your insurance agent must be obtained prior to the closing, and if the property is in a federally designated flood plain, a flood coverage binder as well. The amount of coverage must equal at least the lower of your mortgage amount or the replacement cost of your home. The fact that the insurance is for full replacement cost must be stated in the binder. Please provide our office with your homeowner’s insurance agent contact information as soon as possible. Please note that the policy must be prepaid for the first year, and a receipt for payment will be needed. Prior to closing, contact applicable utilities to continue service and transfer into your name. Your realtor can assist you with this.
Items you will need for the Closing:
Funds Needed: As the lender’s counsel, we will prepare a document called the “HUD Settlement Statement.” This is an itemization of all amounts due to and from the parties. Although we strive to provide at least 48 hours advance notice of the final amount needed, this is at times difficult due to several factors. There are many times when the “CTC” (lender’s clear to close) occurs less than 48 hours prior to closing, so we may not have the final numbers from the mortgage lender in a manner to allow as much advance notice as we would like. Once you have the final amount, you may either wire that amount to our “IOLTA” closing escrow account, or can obtain a bank treasurer’s check. We ask that the check be made payable to you, and be endorsed to our office at the time of closing. Adjustments for taxes, fuel and rents, if applicable will be completed at closing. Please bring a check with you to the closing in case of last minute adjustments such as fuel or utilities that need to be accounted for.
Valid Driver’s License: All lenders require a license and some lenders will request that you bring an additional form of identification.
Title Insurance Lenders require the procurement of a lender’s title insurance policy. If you review the good faith estimate provided by the lender, you will see the premium for this insurance. Generally, title insurance provides protection against most defects in the title to the property that is being purchased and mortgaged. The lender’s policy protects only the interests of the lender (in the event the lender ever becomes the owner of the property), and does not protect you. Given the amount of your investment, it is generally considered prudent to purchase for an additional premium an “owner’s title insurance policy.”