BUYERS - What happens after contract?
Below is a typical checklist of what happens after you sign a Residential Sales Contract.
WE ARE HERE TO HELP - From the time the contract is signed until the day of closing, we will be working closely with you, the lender, the other agent, the title company, and any vendors involved to make the process as smooth as possible. You will also be receiving emails, copies of paperwork, and information from our assistant.
EXECUTED CONTRACT TO EVERYONE - We will send signed copies of your sales contract to you, the other agent, the title company, and your lender.
MAKE ESCROW DEPOSIT - You will drop off a check, or wire funds, to the Title Company for your initial deposit (also referred to as good faith deposit or escrow deposit). Typically, this has to be done within 3 days from effective date (the date that all parties have signed the contract). ***IMPORTANT - If you plan to wire funds, make sure you confirm over the phone that the information is legitimate (i.e., confirm the ABA routing number or SWIFT code and credit account number).***
ORDER INSPECTIONS - We will provide you with a list of inspectors or set up your inspections for you. The following are typically ordered: Home Inspection, WDO (Wood Destroying Organisms aka Termite Report), Wind Mitigation, and 4-Point Inspection. In some cases, you may want to order additional inspections for the pool, septic system, cast iron pipes, or seawall. Inspections typically take around 2-3 hours. Plan to arrive toward the end of the inspection to discuss results and ask questions. Payment is typically due prior to or at time of inspection. This has to be completed within 10 days from effective date.
MAKE LOAN APPLICATION - Within 5 days of effective date, choose a lender and make formal loan application. **IMPORTANT - Please provide all documents requested by your lender to them ASAP. Also do not make any large purchases, take out new loans, or open new bank accounts during this time.***
REVIEW INSPECTION REPORTS - Inspector will typically have reports sent out to you that evening or the next day after inspection. Review the “Summary Report” and WDO Report and let us know what concerns you have. ***Do not share any inspection reports with your lender before speaking to us. They typically do not need them and it can cause issues with underwriting. Exception would be a VA loan, they will need a copy of a “clear” WDO Report.***
OBTAIN INSURANCE QUOTE - You can shop for a homeowners insurance quote, or we can obtain one for you. Provide your insurance agent with a copy of your 4-point inspection and wind mitigation report to obtain an accurate quote. ***IMPORTANT - do not send insurance agents any other inspection reports - only 4-point and wind mitigation.***
LENDER ORDERS APPRAISAL - After you tell us that you are satisfied with inspection results and/or have negotiated repairs, we will advise the lender to order the appraisal. Typically your lender will require payment up front.
UNDERWRITING CONDITIONS - Typically your lender will ask for additional documentation in order to clear conditions from the underwriter. Continue to provide lender with information in a timely manner to prevent delay of closing.
APPRAISAL RECEIVED - It typically takes a week or two to get your appraisal back. Lender will let us know if property hits value and if there are any required appraisal repairs.
ORDER SURVEY - When we know that the appraisal is good, we will order the Survey. We will provide you with a quote first.
FINALIZE INSURANCE - Select your homeowners insurance company and inform your lender.
TITLE WORK - Title Company will be working behind the scenes to ensure that the title is valid and clear. The title company will do a title search, which is a thorough examination of property records to make sure that the person or company claiming to own the property does, in fact, legally own the property and that no one else could claim full or partial ownership of the property. They also look for any outstanding mortgages, liens, judgments or unpaid taxes associated with the property, as well as any restrictions, easements, leases or other issues that might impact ownership.
CHOOSE CLOSING TIME - Typically a week before closing we will coordinate with you, the other agent, and the Title Company to select a closing time that works for everyone. We will also coordinate a walk-through.
SETUP UTILITIES - About a week before closing, we will provide you with a list of helpful phone numbers to set up utilities. You can use the date of closing to begin services.
CLEAR TO CLOSE - Once all conditions are satisfied, the lender will issue a clear to close.
CLOSING PACKAGE - Your lender will send the closing package to the Title Company to prepare the final closing statement.
REVIEW CLOSING DISCLOSURE (CD) - In order to close, you must sign off on your CD 3 days prior to closing. This is a five page form that outlines the final terms and costs of your mortgage.
WIRE CASH TO CLOSE - We will receive a copy of the closing statement once the lender has approved it. We will review it with you prior to closing. You must wire your final funds needed to close at least a day before closing. ***IMPORTANT - If you plan to wire funds, make sure you confirm over the phone that the information is legitimate (i.e., confirm the ABA routing number or SWIFT code and credit account number).***
SIGN PAPERWORK - You will sign final paperwork at the Title Company. This typically takes an hour. Please bring your Driver’s License to closing. You will be provided keys along with copies of your survey and all signed paperwork. Congratulations!
Thank you for choosing Quattrocchi Real Estate!
