So you have already been working with Jerry to find the home of your dreams, you and Jerry have negotiated a great price for your home, and the contract is signed by all parties…What’s next? Here’s a look at a “typical” transaction involving a mortgage.
- 1.Home inspection – The next thing you need to do is schedule a home inspection (unless you decided not to get one). The inspection usually needs to take place within 7 days after we are under contract. You should try to be present for the inspection because the inspector will go over a lot of general maintenance items to keep your new home in top shape. Jerry can provide some names of inspectors to interview, but you are always free to choose whoever you wish. It is a good idea to make sure the inspector is ASHI certified.
- 2.Formal Loan Application – This really should be taking place immediately after getting under contract as well, but some lenders charge a non-refundable application fee. Because of this, sometimes it is a good idea to wait until after the inspection in case the inspection brings up items that keep the deal from proceeding. Just because you have a preapproval through one lender does not mean you need to use them, but you need to decide which lender you’re going to use very quickly after getting under contract. Jerry has lenders that he has screened who offer outstanding service at very competitive rates and pricing.
- 3.Appraisal – After the formal loan application, the lender will order an appraisal on the home. This is to protect them from lending money on a house that is not worth as much as the contract price. Generally the appraiser will be armed with the contract price and this can go into their determination of value. You do not get to pick the appraiser; your lender takes care of this. Usually the appraisals come in at or above the purchase price, which means everything is fine. If it comes in below, then we may have to renegotiate the deal.
- 4.Property Insurance – You will need to secure homeowners insurance before the loan can close. Jerry can provide you with some great insurance reps or you are free to choose whoever you wish.
- 5.Final Loan Approval – These are the words I love to hear. This means that the lender has reviewed everything and approved funding of the loan.
- 6.Schedule Closing – After final loan approval the title company will contact you to schedule the closing. They will have already done a search on the title of the property to be sure that it is free from liens.
- 7.Utility Transfer – MAKE SURE YOU CALL THE UTILITY COMPANIES IN ADVANCE to transfer utilities into your name effective on the day you will take possession. If not, you could be moving into a home with the utilities shut off.
- 8. Closing – This is when you sign all the paperwork and bring a certified check for your down payment. The title and escrow company handles the details and this can take place at their office, at Jerry’s office, or wherever.
- 9.Possession – This is what we have been waiting for!! Sometimes it is the day after closing, sometimes it is a couple of weeks after title transfer (if you agreed to let the sellers stay to close on their next home). Yay! We did it!!