Woot woot! You knocked the most important first step OUT!
I hope you are as excited as we are! 😁
Our goal is to make this process as easy and stress-free for you as possible!
You will be receiving instructions, specific timeline dates and reminders through emails and text messages throughout the transaction from us and from Claudia Lugo, our transaction coordinator.
1. Transfer your EMD (Earnest Money Deposit): Keep an eye on your email for a SECURE email with wire/mail instructions from the escrow company.
*DO NOT wire any money before first contacting your escrow officer at the original contact number provided to you to confirm the proper wiring info. (You will be sent a separate email with escrow information).
2. Schedule your Home Inspection(s): Highly recommended to be done as soon as possible – if something major is wrong with the property, you will want to know sooner rather than later. A general home inspection should cover a broad array of home systems such as heating/cooling, plumbing, electrical, ventilation, appliances, roofing, etc. Although not required, the inspection is highly recommended and may bring to light potential issues that the buyer may not have anticipated. It is an expense paid for by the buyer. Buyers are encouraged to ensure that the inspector they choose to hire has the training, certifications, and experience to perform such inspections. After the inspection, the inspector typically prepares and delivers to the client a written report of findings.
NOTE: Discrepancies listed in the inspection report are NOT necessarily conditions for the lender to approve the loan and the seller is not required to make any repairs. However if you would like to request any repairs based on information found via disclosures or your investigations, this will be an additional negotiation that we will assist you with.
The home inspector is your choice as they are hired by you. If you don’t already have an inspector in mind, or if you do not want to find one independently, let us know and we will send you the information for companies that did a great job for our clients.
3. Complete your Escrow Package: In the coming days/week, expect to receive a package in the mail (or email) from the escrow company. Please make sure the complete package is returned to the escrow company as promptly as possible.
*Emailed instructions regarding this package to follow in a few days.
4. Receive Appraisal Results: As soon as your offer is accepted, we will notify your loan officer and he/she will typically order the appraisal within the first few days of escrow.
An appraiser determines the value of a property and that it is compliant with the minimal liveability guidelines for the loan. The appraisal is ordered by your lender but is a borrower expense.
NOTE: Any repairs listed as mandatory in the appraisal report (if any) are typically conditions for the lender to approve the loan.
5. Remove contingencies: Once you have full loan approval from your lender, have completed your full investigation of the property condition including home inspections, reviewed and accepted all disclosures, title report and any other property conditions, it will be time to remove contingencies.
(Make sure you get an updated insurance quote from your insurance agent and verify if the property is in a flood zone, earthquake zone, and/or fire zone! If the property is in a flood zone, for example, the insurance cost may be significantly higher than the original estimation).
6. Sign loan docs: Once your lender has obtained the “Clear to Close” from the underwriter on your loan, your lender will place your file in que for drafting loan documents. You will typically be signing a few days prior to scheduled closing (occasionally as little as a day before).
Once loan docs have been released to escrow, escrow will add their own set of documents and assign a notary to contact you and collect your signatures on the final docs. At this time, you will also receive wiring instructions from escrow with the final required amount for wiring “cash to close” such as your down payment and closing costs, if applicable.
7. Seal the Deal: LAST DAY! After your lender reviews and approves your signed loan docs, the transaction is cleared for funding. Once escrow has received yours and your lender’s funds, the transaction is cleared to be recorded. Once we have received confirmation of the recording, escrow is “closed” and YOU ARE OFFICIALLY THE NEW HOMEOWNER!! 🙂
*Bear in mind that although the scheduled close of escrow date is adhered to as strictly as possible, delays in appraisals, loans underwriting, or buyer/seller required actions may cause delays to the closing date. Please be sure to comply with all requested documents and actions in a timely manner to ensure the timeline is kept