Deposits, Inspections, Disclosures, Contingencies, Loan, Sign, Payment. It's that simple.
Once your offer is accepted, the financing process continues and we get to work on our due diligence. While it can take anywhere from 21 to 60 days to close the deal, We will be involved throughout the process to help it run smoothly. The simplest timeline for what will happen along the way is as follows:
Order of Events
- Earnest Money Deposit: Within 3 days
- Appraisal Inspection is Ordered: Right away
- Home inspection, pest inspection and other structural, surveys, or tests are ordered, scheduled and then completed: Within 7-10 days
- Disclosures are ordered and received: Within 7 Days
- Reports and Disclosures are reviewed and request for repairs (if any) are made: Within 10-13 days.
- Final loan approval received: By day 14-17
- All Contingencies of the contract are removed: By day 17
- Closing schedule is issued by Loan Officer: 17-21 days
- Final Net sheet of Estimated funds is submitted by Title Officer: Roughly 5 days prior to closing
- Final Verification of Property: 5 days prior to close
- Documents are sent to title for signature: 7 Days prior to closing
- Documents are signed by you: 5 days prior to closing
- Funds are released to Escrow: 1 day prior to closing
- Escrow submits to recording department: On Close of Escrow Day
- You Get Keys to Home! @5pm on day of recording
- Party time! On key delivery, we like to do a short video or photoshoot to capture the experience!
Some things you will pay for prior to close of escrow by personal check, cash, or credit card:
- Pest Inspection: Minimum $99. This varies by size and type of house.
- Home Inspection: Minimum $375 - $600. This varies by company and by size of home, pool, crawl spaces.
- Appraisal Inspection: Roughly $500. Typically this is billed directly to your credit card or bank account.
- Any other inspection or survey fees
- You submit the completed application and any required supporting documentation to the lender (when you are pre-approved, this is already done)
- The lender orders an appraisal of the property, a credit report and begins verifying your employment and assets
- The lender provides a good faith estimate of closing and related costs, plus initial Truth in Lending disclosures
- The lender evaluates the loan package with all of your supporting documents, issues a letter of commitment, loan approval and list of conditions, if any
- You sign the closing loan documents and the loan is funded
- The lender sends its funds to escrow
- All appropriate documents are recorded at the County Recorder’s Office, the seller is paid and the title to the home is yours
Wood Destroying Pest and Organisms (Termite) Inspection
This inspection identifies existing or potential pest, dry rot, fungus and other structure-threatening infestation or conditions. The initial inspection fee covers only those areas which are accessible to the inspector. Inspections of inaccessible areas cost more and are subject to an estimate by the inspector. These inspectors must be licensed and can give estimates to correct noted problems, can make the suggested repairs and/or can certify that the work has been completed. We provide you with a few recommended inspectors in our list of preferred vendors.
General Home Inspection
This inspection identifies material defects in the essential components of the property based upon a noninvasive physical inspection.There are no licensing requirements for someone to be a home inspector. These inspectors are not allowed to give estimates to correct noted problems, nor can the inspector perform any of the repairs. We provide you with a few recommended inspectors in our list of preferred vendors.
This inspection plays a critical role in the purchase process. In order to obtain a loan, the home must be inspected by an appraiser. The lender will put in an order for the appraisal to occur but neither the lender or your agent have any control over who the assigned appraiser will be. In most cases, it's extremely important that the home appraises for the price agreed in the contract. Unless circumstances are such that we are not able or allowed to attend the inspection, it is standard practice of agents from The Jeff and Geoff Team to attend the appraisal inspection. As local experts, appraisers may rely on information that only we obtain. Our involvement in this process is important and we take pride in delivering this kind of service to our clients.
Request For Repairs:
A formal “Request for Repair” can be issued to the seller(s) of the home at any time during the purchase process. For greatest effect, a request for repair will take place immediately after receiving reports from home inspection. This is usually 7-10 days into the buying process. It is important to know that the seller is not obligated to acknowledge or accept the terms in the request for repair. As the buyer, you have the right to request repairs to be made and to respond accordingly to to the sellers response (or lack of response). The success of your request for repairs are based on several factors.
- The request are supported by proper documentation by way of qualified inspector or contractor
- The request for repair of health and safety items that influence the ability to obtain financing
- Purchase price vs. asking price is often taken into consideration by both parties during the time of request.
- Length of escrow and timing available to complete repairs.
- If the repairs will benefit a short term solution for the seller, or a long term solution for the buyer. (examples: Repairing an item required in order to obtain financing = short term. Replacing a water heater that is old but not failed or unsafe = long term.)
It is also important to note that often times, the result of this request for repairs comes (or at least can) in the form of a credit to the buyer in leu of repairs requested. In some scenarios, there simply will not be enough time to complete the repairs prior to close of escrow.
A title spells out who has the right of ownership for a property. It is considered “clear” if there are no claims or liens against it. In order to make sure nothing will prevent transfer of the property to you, a title company will conduct a title search and prepare a preliminary report that indicates what recorded matters affect the title to the property and if the title insurance company is willing to insure the title. At the close of escrow, the title company will issue an Owner’s Policy of Title Insurance to protect you against losses that might arise from covered claims on the title.
Preparing for the Closing Costs:
A home purchase is a complex transaction involving many parties and associated fees. In addition to your deposit and down payment, there are a variety of other costs involved in the close of escrow, including:
- Loan origination fees, appraisals and reports
- Surveys and inspections
- Mortgage insurance
- Hazard insurance
- Title Insurance, notary and escrow fees • Recording fees and stamps
- The lender will provide a good faith estimate of these costs prior to the close of escrow, so that you will know in advance what to expect. Some of these costs may be negotiable items with the seller. Naturally, I’ll walk you through each item in your closing to make sure you understand every detail.