Home Buying Steps

SELECTING A TITLE COMPANY

 

             A title company is chosen to coordinate all the paperwork between buyer, buyer’s lender, seller, seller’s current mortgagor, and the local city/county office where the public records for the property are kept.

             The title company searches the county records for any liens and encumbrances, if any, on the property, prepares a new deed with the buyer’s name and whether title will be held singly, joint-tenancy, tenancy-in-common, or tenants by entirety, pays off the seller’s mortgagor, pro-rates current water bills, obtains final buyer signatures on loan documents, and issues buyer and lender title insurance, and collects certified funds from all parties involved to transfer ownership to the buyer.

            

OBTAINING HOMEOWNER’S INSURANCE

 

             The lender will require you to obtain insurance on the property since they have a vested interest in the property should anything happen while you own it. This is called casualty insurance and can be obtained from most national companies. It needs to be done sufficiently ahead of time.

             Generally, you can obtain it from the company with which you have your car insurance. Usually, they are able to give you a discounted rate since you already have insurance with them. The agent needs to contact the lender for the proper mortgage clause endorsement to the policy. You will have to pay the first year premium up front and get a receipt from the agent to give to the lender. Future payments will be made from your escrow account that is set up as part of your payments from the lender.

 

COMPLETING THE WALK-THROUGH

 

             A final walk-through of the property is made several days prior to the actual settlement date. The purpose of the walk-through is to make sure that the property is in substantially the same condition as it was the day you made the offer. You will be given an opportunity to make sure all electrical, heating and air conditioning and plumbing systems are in operating condition and that any appliances that stay with the house are in operating condition. You will check to see that any repairs that were done as a result of any inspections have been properly completed. Be sure to call the gas and electric company to have service put in your name the day of settlement and make arrangements with the telephone and cable company as well.

 

GOING TO SETTLEMENT

 

             Settlement will be scheduled on the date specified in the Contract of Sale at a time that is mutually agreeable by both parties. It usually takes a minimum of 1 hour to complete the myriad of documents. Both seller and buyer are expected to be at settlement! Any changes in the settlement date must be agreed upon in writing by both parties. You will bring to settlement a certified check or a bank cashier’s check made payable to you. You will endorse it over to the title company at time of settlement. Any overage will be refunded back to you from the title company the same day.

             Once settlement is completed, you will be given copies of all documents signed plus, ”THE KEYS” to your home!!!

 

MOVING DAY

 

             Once settlement is completed, you can move in the very same day, unless you have earlier given the seller the right to post-occupy for a given time frame. Make sure you schedule the moving truck ahead of time and line up friends and family to help on the big day.