If the homebuyer stalls on any requested lender docs, they could be to blame for any delays

Ensure that you avoid this situation by promptly providing any documentation to your mortgage lender as soon as they request it.

TITLE COMMITMENT

This step is handled by the Title Company or law office facilitating the transaction. They will issue a Title Commitment that reviews the property’s title history (chain of title). They will also disclose any liens against the property that need to be resolved before closing.

Since the title commitment doesn’t typically interfere with the loan, it’s one of the most overlooked steps in the process. Title commitments are not important until they reveal a problem. The most common mistake http://www.homeloansplus.org/payday-loans-id that people make with title commitments is to ignore them.

Be sure to review your title commitment and ask an attorney for advice if you find anything that concerns you. Most title commitments are straightforward and require no additional work on your part. Review the commitment thoroughly before moving on to the next step.

APPRAISAL

Once you have cleared the Inspection process, let the mortgage lender know that you’re past that step. The lender will order a home appraisal to verify that the homes value is worth the sales contract’s loan amount.

Appraisals are an important part of the real estate process. It protects the bank from issuing loans above the actual value of a property.

Poor appraisal processes were one of the causes of the real estate . Banks were offering bigger loans than the homes were worth. Regulation has since been passed to limit the relationship between mortgage companies and appraisers.

In Colorado, appraisers have ten business days to complete the appraisal, starting from the order date. For this reason, it is crucial to make sure that your lender orders your assessment as soon as possible. The homebuyer will likely be paying for the appraisal. It’s best to order the appraisal report after the buyer and seller have reached a satisfactory agreement regarding inspection objections.

HOME INSURANCE WARRANTIES

The mortgage lender will require the buyer to have a Home Owner’s Insurance Policy on the property before closing. The buyer will shop around and choose a homeowner’s insurance provider and policy that works best for their home.

Homeowner’s insurance providers vary dramatically in pricing and coverage. We recommend getting quotes from no less than three insurance providerspare the large national companies with smaller local agencies to get the best results.

Home warranties are also accessible within real estate transactions. Some sellers will provide an allowance for the homebuyer to purchase a home warranty. If you’re buying a home warranty, shop around and find the warranty company that best suits your needs. Once you’ve found the right home warranty provider, let the title company know who you plan to use.

TURN ON UTILITIES

With so many details happening at once, it’s easy to forget the home utilities. Some states require the seller to disclose the local utility providers in the Sellers Disclosure. Contact these utility providers immediately to schedule or transferred them into your name.

If you’re shopping for a home in a rural area, verify local internet speeds before placing an offer on a home. Many neighborhoods on the edge of town do not offer high-speed internet.

During busy months (typically in Summer), you may want to schedule your utilities at least a week before your closing date. It’s wise to set up your utilities as soon as possible before you’re ready to move in/out.

SCHEDULE YOUR CLOSING

Your sales contract will have an agreed-upon closing date. Ensure that someone has contacted the title company in advance to make sure they have a convenient time slot open. Title companies often book up during the busy Summer months. Be sure to schedule this at least a week or two ahead of time.

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