It has been a while since I wrote my last post in the guide to buying and it’s high time I finished the series. We have come along way in the buying process, here are the prior posts:
- Buying Homes in Barrington Without an Agent
- Are You My Mother?
- What To Tell Your Barrington Real Estate Agent
- 7 Home Buying Costs You Need To Know
- Why Hiring Your Own Buyers Agent Makes it Easier to Look at Home
- Let’s Go Home Shopping in Barrington
- Making An Offer on Your Dream Barrington IL Hom
- Barrington Home Buyers – Attorneys, Reviews, Inspections – And TILA-RESPA
- Mortgages After Bankruptcy, Short Sale and Foreclosure
You’ve made an offer which was accepted, you’ve gone through the inspections and attorney review process, your mortgage application is being processed.
At this point in time it’s time to let the Attorneys and Mortgage Lender do their work. It feels like a quiet time with not much happening. A title commitment is ordered by the sellers attorney and provided to your lender. That along with all the information they have asked you to provide will move them toward issuing a “Clear to close” commitment of the mortgage funds. The lender will be doing a lot of paperwork during this time and may have discussed the mortgage rates with you and locked you at a rate. Rate locking is something you should have a good understaing of when making your loan application. Your loan officer is the person to explain how it all works and work with you to lock your rate at some point.
Sellers Attorney – A survey of the property will be ordered for fee simple properties. A well and septic report will be ordered for private well and septic properties. You’ll get the survey at closing, the well and septic report will be passed to your attorney and you as soon as it is done. Your attorney will discuss with you any problems revealed in this report and what if any resolutions are needed by the seller to make the property acceptable to proceed.
The seller may be working on having any inspection repairs done. Your job is more to trust the process and deal with getting your moving plans under way. There is a date on your contract that provides your lender with a date to get that loan commitment done. Then we are set to move towards closing.
Scheduling and Attended Closing
With financial commitment in hand and everything else done, we should only be a week or so away from your closing date. The sellers attorney will schedule the closing giving, you, me and your loan provider a timeframe for the remaining action items. Your lender must provide you with a closing statement before then, 3 days at minimum prior to closing. You can no longer waive this, it’s a legal requirement.
Sending Your Money. For all cash deals or if you have to wire your funds (anything over $50,000). The information will be provided to you and you need to visit your bank and set up your wire instructions. Be prepared and check with your bank what it’s rules are. DO NOT leave this to the last minute. Have your money wired in time for your closing as a late arrival may cause havoc with your closing. If you are getting a mortgage your lender will be getting themselves ready for their side of the money too.
You and I will need to carry out a walk through of the property. We like to do this close to your closing time and the seller should have vacated. The purpose is to make sure the property is essential the same as it was when you made your offer. No material changes. Make sure things are still functioning. It is NOT a time to have the family over to show them your new home. First it is not yours yet, second I am working with you on a function to ensure a smooth closing and to reveal any problems. Lastly, aside from taking up my time, it may very well distract you from the job at hand.
Off to Closing. Here in Northern Illinois we have our closings at a title company office. That may be solely an office of a title company or an attorney’s office that has the title company within. Ownership transfer of the property will occur at the table. Hopefully your wire and the lenders wire have both arrived. Sellers do not always attend their closings, buyers usually do. Both attorneys will be there to facilitate the legal side of the sale. There is a “closer” employee of the title company who deals with the paperwork. As your buyers agent I will be there if at all possible. The sellers agent may or may not attend. Agents are not required for most closings, we are there as moral support.
Your attorney will explain all the documents you now sign including the loan documents. When everything is signed, the closer will send loan documents to the lender. If they are satisfied with those and the attorneys have completed their paperwork, the transfer of the property is done. A cash closing can take less than an hour, allow about an hour for one loan purchases, longer for two loans.
The closer distributes the funds. You get your keys. The property is now yours. Celebration!
I hope this series has been informative and educational, but I am sure you may have questions, just know you can always ask, during or after your purchase, I am always available to you.