FOR GLERY ROSS CLIENTS
BUYER'S CLOSING GUIDE
The following describes the procedures once you found a home and you are under contract.
Congratulations on the purchase of your home! Now that we have found your home, the following information will guide you through the final closing procedures.
To accomplish a successful closing, it requires team effort from all parties involved. The following are the various party to your transaction:
Roy, Jon and the Glery Ross Team:
The Title Company
The Inspection Company
The Insurance Company
The Surveying Company
The Listing Broker
And the list continues…
We coordinate with those involved to create a successful closing. Cooperation from all parties is essential to a successful closing. We will follow up with all parties and periodically communicate the results to you. Should unforeseen issues arise, we will first solve them before contacting you. If we need your input, we will then contact you and discuss options that will satisfactorily solve the issue. You are welcome to contact us if you have any questions during the process.
I have not made loan application yet-when do we apply?
The contract calls for a specific date in which you will need to apply by for a loan. Typically, you would have spoken with a lender before we begin the home purchasing process. However, if you have not made formal loan application, we then recommend you contact a reputable lender than can perform and provide you assurances that you will qualify for the loan.
Through trial and error, we can advise you of lenders that can perform in a timely manner however, you’re welcome to compare any lender of your choice. If you would like a list of preferred lenders, please let us know.
Inspecting the Home
Inspections are performed per the contract datelines. You select the professional inspector and we will contact the listing agent for the appointment. Most inspections last from 2 to 3 hours, some longer depending on the size of the home. We highly recommend you be at the inspection with the inspector to become knowledgeable about the internal workings of the home.
The inspector will normally make you aware of items that are not operational, need maintenance or replacement, and items of major concern. The Inspection is mostly a visual inspection and the inspector will explain what concerns they may have regarding items not visible. Please keep in mind that when purchasing a resale home, the home will have items that may need your attention in the future and may not be discovered during the visual inspection. Stay focused on the major components of the home that are not operational and or need further evaluation, and not be distracted with the property’s minor flaws.
After the inspection is completed, the inspector will have a report to you within 24 hours. We then review the inspection report with you and discuss what is important to you and the merits of what to request to have repaired or replaced by the seller, or a credit from the seller. Please note that your lender may require seeing the inspection “Objection Notice” or “Inspection Resolution” for condition of the home. We do not provide any documents to the lender, and it would be your responsibility to provide those documents if requested by the lender.
The document in which the seller responds is the “Inspection Resolution”. The seller may respond by copying the Inspection Notice request in it’s entirety, and either repair some of the items, all, or none. Should the seller NOT respond to your Inspection Objection notice, the contract is then void at midnight of the Inspection Resolution deadline. If that is the case, you have the option to “rescind” the Inspection Objection and accept the property AS IS and continue with the contract or allow the contract to terminate. It is up to you to consider the response however, the seller is under no obligation to respond.
Home owner’s warranties are available for purchase that covers the major components of a home should the sellers not address your concerns. These warranties typically last for one year or more and may be negotiated in the offer or paid by you at closing.
The appraisal will be ordered through your Lender. The Lender will contact the Listing agent for the appraisal appointment. Once the appraisal is completed, it usually takes 5-7 days to receive the final answer from your Lender on value. We are not authorized to speak with the appraiser about the final value and neither is the buyer. It is the Lender’s appraisal and they can discuss the appraised value with you. If a VA appraisal is involved, it may take longer. The appraisal normally verifies the purchase price. Most the time the value is the same as the purchase price.
Surveying the property
The surveyor will just show up to the property and do their survey. They do not call for appointment unless they cannot access the back yard. Their job is to locate the “improvements (property) on the Land” or on your lot, and the distances to the property lot lines. This is not an official survey. Your “survey” is actually called an “Improvement Location Certificate” or ILC. If you require a pin survey, or survey plat, the cost is normally about $2,000 or more. The ILC cost is approximately $250-350 or more depending on location and lot size.
What is a Title Commitment Policy?
Land Title’s complete explanation on the Title Commitment and options: Title Commitment policy and options
The purchase contract states that you have the right to a walk through prior to closing. Just notify us within a week prior to closing to set up the appointment. At the walk through, we verify items repaired resulting from the agreed inspection notice. Receipts will be available at or before closing.
Contact your insurance agent as soon as possible. Please provide your insurance carrier the pertinent property information for your insurance quote. If they need more details, call us and we can provide the needed information. Have the agent contact your lender with the annual premium amount so that the premium can be added to your closing cost for closing. We recommend you obtain a “CLUE” report from your insurance company. The CLUE report may note if the property had major prior claims, which may affect your quote for the hazard insurance.
When will I know how much money I need for closing?
Once you get loan approval, the Lender will forward a CD of your closing figures, and the “loan figures” to the Title Company. The Title Company then combines the “real estate” figures including sellers pay offs, HOA cost, tax assessments and prorated cost to derive at an accurate Closing Disclosure formerly known as your HUD form. The lender then approves the final CD and you’re good to close. We will review your CD as well and discuss figures with you.
Where do we close and who will be at closing?
We normally close at the Listing agent’s office or at the Title Company. The Title Company will perform the closing and will also close in behalf of your Lender. We will be at the closing with you. The Listing agent may also attend the closing with the seller unless it’s a mail out.
What if I have a conflict with closing time-can we pre-sign or use a power of attorney?
Yes, you can do either one. If you pre-sign, you will normally sign at the Title Company. When all parties have signed, then the disbursement will take place and you become the owner of the home. If you need someone to close on your behalf via “Attorney in Fact”, or “Power of Attorney (POA)” then that person you select must sign all documents as you would and assume the responsibility for the closing. You should use the Title Company’s POA form, except if its provided by your attorney. Please verify with your lender of your intentions to close via a POA.
Can I wire the funds, or do I need a cashier’s check for closing?
Normally, the funds are directly wired to the Title Company. If allowed, you can bring a cashier’s check, or certified funds to closing. If you are bringing a cashier’s check, it’s made out to the Title Company.
What else do we need to bring to closing?
Bring two proper photo ID such as a driver’s license to the closing. If the insurance agent gave you the policy, bring the policy. If you have sold another home prior to this closing, bring the certified CD or HUD settlement of your closing and a copy of your warranty deed on the sale of that property.
When do I make my first mortgage payment?
Loan payments are paid in arrears. The first of every month you make payments to your mortgage company. That payment makes the interest and principal payment for the PRIOR month. For example, if we close before the end of the month, you pay the interest to the end of the month and the first of the following month your first mortgage payment is due. If we close on the 25th of May, you pay interest to the 31st of May at closing, and your first mortgage payment is now due July 1st.
When do I get the keys?
Typically, at closing you receive a set of keys to the Property. The contract states when possession of the home will take place. If the possession is delayed, then exchange phone numbers to contact the Sellers in case of any changes.
When do I switch utilities?
It’s best if you call the gas and electric companies prior to closing and ask them to switch utilities to your name and to have a final reading of the meters. Typically, the sellers wills request a final ready and not turn off the utilities. Do the same for phone, cable, trash service (if outside of HOA dues) and the like. We will handle the water and sewer conversion and final water bill through the Title Company. The Title Company escrows sufficient funds from the sellers to pay the final water and sewer bill if applicable. Utilities Transfer
Xcel Energy for gas and electricity - https://www.xcelenergy.com/start,_stop,_transfer
Change of address, USPS
I know this may be asking for too much, but how about the Colorado Motor Vehicle Registration-locations, manuals, etc.?
· Click here for Colorado Motor Vehicle Division Handbooks/Manuals. http://www.dmv.org/co-colorado/car-registration.php
Commentary by Roy and Jonathan Lopez:
As your Realtor, we orchestrate the closing and review any information prior to closing. Other parties will normally do the same and update us on any changes or modifications to the closing. Delays can occur at closing which are out of our control. We ask you to be patient if that occurs. The delays will be solved with the least amount of inconvenience to you. My professional experience in assisting over 1,700 families successfully close on their homes has been a great teacher. Every challenge has a solution!
We hope this information is useful to you, and that you refer us to your friends or relatives should they need real estate assistance.