The Road to Closing Day
Congratulations, by this point you are on your way to owning your very own home! You will no longer see your Agent for showing appointments, but know that a lot of behind the scenes items are happening and your Agent, lender, and title company are helping you every step of the way during your 30-45 day pending period. Below are some of the milestone moments you will go through to get to closing day.
Once you are under contract, your Agent will submit your file to our admin team, Ignite Services. Within 24 business hours, a congratulatory email will be sent out with a list of next steps, earnest deposit information, and copies of your executed purchase agreement. Ignite Services will also submit the file to your lender and title company so they are aware of your executed offer and can start their processes too. Ignite Services will be with you and your Agent throughout the transaction to ensure prompt communication and assistance as needed.
An earnest deposit is your good faith in the transaction, is typically 1% of the purchase price, and is negotiated in your purchase agreement. The deposit check will be made out to the Title Company mentioned in your purchase agreement and will be promptly cashed. Assuming the sale goes through, this money will be applied to the purchase price of the home. If for any reason the sale is not consummated, you may be entitled to receive all of your deposit back, less standard cancellation fees. In certain instances, the seller may be able to retain this money as liquidated damages.
Once you are under contract, Ignite Services will send a copy of your executed contract to your lender. Your role at this point is to reach out to your lender to see if they need any additional forms or documents from you. You may still need to lock in your interest rate. Staying in constant communication with your lender is key!
OBTAIN HOME OWNER'S INSURANCE
If you are financing your home, then a home owners insurance policy will be required to be in place prior to closing and set to be effective on the closing date. The Ignite Team at Platinum Realty has partnered with Castle & Assosciates at American Family Insurance to help make this process as simple as possible. Once you are under contract, Castle & Assosciates will reach out to you with a complimentary home owner's insurance quote. Keep in mind that you can shop and select any insurance company you prefer.
Your lender will order an appraisal of your property within a week or so of receiving your executed purchase agreement. The appraiser will go to the property and evaluate neighborhood comparables to determine the true value of your home. Results of the appraisal will be sent to you within two weeks of the appraisal being completed.
INSPECTIONS (IF NEGOTIATED)
There are a variety of inspections that you could have requested and paid for for including: whole house inspection, radon, lead based paint, mold, etc.The most commonly requested inspection that we see is a whole house inspection. If your whole house inspection request is accepted by the seller, we strongly encourage having an ASHI certified inspector, like Scott Koel with Signature Property Inspections, perform the inspection. What does the inspector do? Well, they will investigate all areas of the home: attic, roof, crawl space, electrical panel, check outlets, test water systems, and more. Hours later, once the inspection has concluded, you will meet with the inspector you chose to go through all of the findings.
HOME WARRANTY (IF NEGOTIATED)
Home warranty companies, like CINCH, offer home warranties that generally cover failures incurred from daily wear and tear of the major kitchen appliances, water heater, HVAC systems, plumbing and electrical. In your purchase agreement if you elected to purchase or are receiving a home warranty from the seller then your Agent or Ignite Services will order your warranty and submit the invoice to the title company and it will be line-itemed as part of your closing costs.
TITLE COMMITMENT ISSUED
Per the purchase agreement it is requirement, unless waived, that the seller must provide valid and marketable title to you, the buyer. The title company is in charge of researching the property and issuing the title commitment well before closing.
SET UP YOUR UTILITY SERVICES
Within a week of your closing date, Ignite Services will send you a utility service set up reminder. It is your responsibility to set up your services effective the closing or possession date, whichever comes first. The Ignite Team at Platinum Realty also partners with OneSource, a company dedicated to helping buyers set up utilities and shop services such as internet, cable, home security, and more at no cost to you!
A final walkthrough takes place within three days of closing. This is your opportunity to make sure that the property is exactly as the contract says it should be.
Closing occurs at the title company and you will need to bring a valid ID and a cashier's check with the sum of your downpayment and closing costs. After you sign all of the required paperwork you will officially be closed and will be the proud owner of a new home. Congratulations!