Your offer has been accepted. Now what?

          STEP 1  LOAN APPLICATION

                       The first thing to do is contact your mortgage lender to apply for the loan. They will need a copy of the contract to verify the conditions regarding the sale of the property. This formal loan application should be done within the first 5 days.

         STEP 2  SELECT AN ATTORNEY

                       The next step is selecting an attorney that will be used in closing on the property. It is important to get the closing date on the attorney's calendar as soon as possible.

         STEP 3   HOME INSPECTION

                       This is another critical point in the process. If repairs are required and the seller and buyer can't agree on what will be repaired and by whom, then the contract may be terminated. The earlier you know if there are repairs to be resolved, the better. 

          STEP 4  THE APPRAISAL

                       This step is one that is normally initiated by the mortgage company. If the appraisal comes in lower than the sales price of the home, resolving this situation may require further negotiations between the parties involved or the contract could become void.  

         STEP 5   HOMEOWNERS INSURANCE

                      If the buyers are getting a loan to purchase their property, then the mortgage company will require that they show proof of sufficient homeowners insurance before closing.  The insurance company will need time to see if there are any issues regarding the property (previous claims, old roof, etc.).

         STEP 6  TERMITE (CL-100) INSPECTION

                      In the majority of contracts, the sellers are responsible for obtaining the termite inspection.  As with the home inspection, timing of the CL-100 inspection is also important.  The CL-100 inspection is valid for 45 days and although it should be done early in the process, it should also allow for the closing date with extensions to fall within this range.  

         STEP 7   UTILITY TRANSFER

                      Both the buyers and sellers will need to notify the utility companies of the need to transfer the accounts.  It is recommended that the date chosen for the transfer be the date the buyer will take possession as identified in the contract.  Utility transfer notification should take place approximately one week prior to closing.    

         STEP 8   HUD STATEMENT

                       The closing attorney's office should provide a copy of the HUD-1 settlement statement at least 24 hours prior to closing.  Both the listing and selling agents will review the statement with their clients for accuracy, checking it against the terms of the contract and any other known expenses incurred during the closing process.  

          STEP 9   THE FINAL WALK THROUGH

                        The purpose of the walk through is to allow the buyers to check the property to determine if the seller has met all terms of the contract regarding the condition of the property, including any repairs.  The walk through should be scheduled the day before closing.

          STEP 10   THE CLOSING

                         Proper identification (driver's license, etc.) is required at closing.  All monies must be in the form of a cashier's check.  Sellers should also bring all keys, garage door openers, etc.  

This brings us to the end of the process in moving from contact to closing.  Although the steps mentioned above may not occur in the exact sequence mentioned, they will normally all occur.  If you have any additional questions, please contact me.  Stan McLeod