After the Contract is Signed, What's Next?

You´ve signed the contract, escrow is opened with receipt of your deposit and contract, and you are looking forward to moving into your new home.  However, there are a few steps that cannot be overlooked.  By following these easy steps, you will ensure yourself a smooth move into your new home.

1. Contingency period is the time allowed per your Purchase Agreement to obtain financing, perform inspections, and satisfy any other contingencies to which your purchase is subject.  Typical contingencies include:

•     Approval of Seller´s Transfer Disclosure Statement.
•     Approval of the Preliminary Report from the Title Company.
•     Loan approval, including an appraisal of the property.
•     Physical inspection of the property.
•     Pest inspection and clearance report.

2. Set up an appointment with your mortgage consultant as soon as possible.  Getting the loan is usually the process that takes the longest to complete and it is essential to start the process immediately.  Your lender will inform you of what information you need to supply.  However, be up front and honest with your lender about your credit history, they are there to help you get your loan and can often solve any issues.

3. Get the home inspected.  Arrange a time to return to the property for inspection with a professionally licensed inspector.  The inspector will accompany you through the home and point out repairs or discrepancies if they exist.  This is one of the few expenses that will need to be paid by you directly to the inspector at the time of the inspection.   

4. Submit a request for repairs to the seller for those items pointed out in the inspection report that you feel should be fixed such as any safety items or items you feel that are important.  Remember; homes are all sold "as is" and even though it is customary to ask for a few repairs, the seller is under no obligation to make them.  If you feel that the home is unacceptable after inspection, then you can cancel the contract and ask for your deposit back as long as you are within the contingency period.

5. Work with The Joys of Real Estate to provide the necessary paperwork for the escrow and title companies.  These companies have the responsibility of making your transaction legal.  They will do the title work, examine the survey, prepare mortgage documents, and all the necessary closing paperwork.  After the settlement, they will prepare packages for your mortgage lenders, accounting and title insurance, file documents with the county, and release escrow.  Due to the complexity of the documentation, a transaction coordinator (TC) is often used as a single point of contact to coordinate the necessary paper work between all parties.
 
6. You will need to provide proof of homeowner´s insurance.  You have the right to choose your own insurance company.  If you have not selected one, work with The Joys for a referral to a reputable company.
 
7. Arrange for movers now.  If needed, The Joys can give you a list of movers so that you can shop for the best fit and price for your move.

8. Sign the loan documents.  The loan documents are usually signed by you at the escrow office preferably 5 days before closing to allow ample time for the processes to be completed by the closing date.

9. Obtain certified funds for the settlement.  The escrow company will be able to tell you in advance the exact fees that will be due.

10. Conduct a final walk through of the home.  Be sure to note any discrepancies from the original home inspection and that agreed to repairs have been made. Now is also the time to transfer all the utilities into your name effective on the date of closing.

11. On the close of escrow day many transactions occur which normally happens in one day if the process is started early in the morning:

• The necessary funds are wired to the Federal Reserve from escrow and the lending institutions.
• The Federal Reserve then clears the funds and they are wired to the title company.
• The title company records the deed of trust at the county recorder´s office, pays off all the liens on the property, and wires the remaining funds to escrow.
• When The Joys receive the notice of recording from the title company the property is yours and we will happily deliver the keys to you as quickly as possible!

Congratulations!

Want more information? Call us at (858) 472-3888 or contact us here.