Give yourself a pat on the back because you are now a homeowner. But, final preparations need to be accomplished before you can truly enjoy all your hard work. The job's not done until everything has been ironed out.
The moment that you sign your name on the dotted line of the contract is a truly unique and exciting time. But this doesn't indicate that you're finished with everything. You still need to finalize a few things, and this guide will give you an idea about the next phases that you need to accomplish after you've signed an agreement with a property's seller.
1Understand All The Things You Have To Do
After the contract signing, you can then begin moving into your new home. The time that you'll have to finalize the closing process will depend on how long it will take you to properly move into the new property, which could take from thirty to sixty days. During this time, you will need to order appraisals, as well as surveys, and you should meet with your lender too. In case you're renting, inform your landlord that you're moving out, or sell your old house if you own one.
2Finalize The Mortgage And Closing
The main issues that you must properly see to are the closing process and mortgage. It's a must to finalize your mortgage and ensure that the closing process between the seller and buyer (you) goes without a hitch. Speaking of the latter, the closing transaction will go a lot easier if experienced real estate agents represent both parties. Remember, though, that you will be required to pay your agent's commission during the closing, which may be a downside to some. Before hiring an agent or broker, be aware of the total amount of the charges or fees that he's asking for.
3Closely Work With An Agent To Guide You
The added benefit of hiring a real estate agent is that he manages everything that goes on between the time you signed the contract and the schedule of the closing. During this time, you must be prepared to present certain papers, including the reports of the home inspection that were done beforehand; but these things will be taken care of by your agent if you're working with one. As the closing draws nearer, you and your agent must frequently communicate with each other.
4Know Your Obligations Before Closing
The work involved as well as your responsibilities as a buyer will largely depend on the type of sale; every sale is unique, and there are different approaches to each. As you get closer to the closing date, here are a few events that may follow. First, you need to apply or obtain financing, which may require your lender to appraise and inspect the property, which often includes a property survey, a termite inspection, and other assessments. After these inspections, you can review the contingency clauses in your document before you make a final decision about purchasing the house. During this time, you will also learn whether or not you've been approved for a mortgage, which will help in determining the interest rate.
5Prepare To Present The Needed Documents
Like most money-related proceedings, you will have to present certain documents to your lenders, including the following: pay stubs, W-2 forms, tax returns for the last two years, investments, records of debts, canceled mortgage or rent checks. You may also need to present other sources of income and other records of debts. As proof of employment, your lender may ask about your previous or current employers or recent tax returns in case you are self-employed.
6Study The Inspection Report
The usual inspection report will include some general information about the house, and there are also specific sections that focus on certain areas of the property. General information shows the year the house was built, the style of the structure, the temperature inside the house, and the overall weather of the area. In addition to that, there will be more detailed reports regarding the condition of the main structure and written evaluations about specific areas, such as the roof, carport or garage, siding and trim, doors, windows, landscaping, basement and attic, as well as a thorough documentation about the utilities, including heating, ventilation, electricity, air conditioning system, and plumbing. Inspections also involve the examination of the interior structure, specifically the floors, ceiling, and walls, to check for any damage. When buying a house, must remember to thoroughly examine the following factors - asbestos, radon, and termites.
Once the end is near, you may be tempted to sit back and relax and just let your real estate agent take care of everything. However, you must be involved, especially since the time that you have before closing is quite limited. Once you have taken care of the inspections and the financial aspect, the only thing left for you to do is finalize the title insurance and wait for the closing schedule.
Jackie Wing is an Alaska native who enjoys snowboarding more than is probably socially acceptable. She lives in Anchorage with her two dogs Reese and Peanut or as she likes to call them Thing 1 and Thing 2.