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After a thorough search of available
homes, possibly including opportunities for both new and existing homes, the selection of
a home culminates in an accepted purchase agreement. In the period of time following the
acceptance of the purchase agreement, and prior to closing, you must attend to several
items. Mortgage Loan
The application for any
necessary mortgage loan is usually made within 5 days after the acceptance of the purchase
agreement. The application can be made through any mortgage company or bank.
We can provide
names of mortgage companies which many buyers have used with success and satisfaction.
Loan approval
usually takes about 3 weeks. You are urged to stay in touch with your mortgage representative
to be sure that all documents are being processed on time.
Home Inspection
Home inspections are
normally done within 7 days after the acceptance of the purchase agreement.
We strongly
urge inspections of existing homes. Some buyers of new homes have the homes inspected,
while many do not. However, you are certainly well within your rights to have a new home
inspected. Inspections consist of a general structural inspection, a termite inspection,
and a radon inspection. While each is optional, we urge all three. Mortgage companies
usually require a termite inspection for any home being purchased with less than 20% down.
Practically everyone buying a home with a basement has a radon inspection. The three
inspections together run about $250. You are welcome to attend the inspections, and in
fact are urged to do so.
You receive an
inspection report shortly after the inspection. Within 15 days after the acceptance of the purchase agreement, you must complete an inspection amendment,
requesting the sellers to correct any major problems which may affect the habitability of
the home.
Homeowners Insurance
You must obtain a policy
prior to closing. If you would like, we can have an independent broker provide a quote. The
premium should be less than $3 for every $1,000 of insured value. For example, a $200,000
home should be less than 3 x 200 = $600 per year or $50 per month. Please let
us know the
dollar amount for the premium at least a few days before closing, so that we
can tell the
title company.
The title company
will call us prior to closing to get the premium amount, so that they can tabulate the escrow amount for the closing statement.
They will then fax us a copy of the closing statement so that we can review it with you prior to closing.
Closing
Closing is usually held at
the title company selected by the sellers to provide your title policy. It is customary
for the sellers to bear the cost of this policy.
You need to bring 3 things to closing:
1. your cashiers or certified check
2. your homeowners insurance policy
3. your receipt for 1 year prepaid on the policy.
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