Getting Ready For Closing – Next Steps
July 7, 2013
Blog, General Investing, Rental Property, Single Family, US Real Estate
Now that an offer was submitted and accepted, the agent had visited the property to make sure everything is ok, the next steps are:
- If you have not done so already the agent will provide you with instruction to send the earnest money (deposit) for the purchase.
- The agent will schedule and inspection by a license inspector. You’ll need to pay for it – the agent will provide instructions.
- Once inspection is done, and it may require some additional negation w/ the seller, you are going to start the loan process. Part of it will be to send an appraisal over (the agent and the lender will coordinate) to make sure the house apprises for the asking price.
- Once appraisal is done the an escrow account will be open and the title company will order title search to make sure you are buying the house w/o any title issues.
- A closing date is set: by that time you will need to make sure you have ALL the funds ready for the down-payment + closing cost, for example:
- Earnest money: $3000
- Down-payment (20%): $26,000
- Closing and mortgage costs: $3500
- TOTAL: $32,500
- Few notes/additions:
- Lender may suggest you pay in advance for 6 months or 1 year the insurance and property taxes (another ~$3000) in exchange for a lower interest rate. If you have it we suggest you do so as you are anyway going to pay this over the coming year.
- As the agent suggested you will have $2,000-$5,000 in repairs after closing (amount will be different from one house to another).
- Simply Do It invoice will be issued after you close.
- Just before closing you will need to sign a property management agreement
- Just before closing we will send you an IMPORTANT video to make sure you know in advance about being an owner when working with property manager/s – CRITICAL TO WATCH!
- From now till closing make sure you are pro-active with the lender and are ready financially.
Prep For Closing Day
- Make sure funds are ready
- You will need to sign purchase documents using a notary. Notary can come to your hose (called mobile notary) or you can find one in a nearby title company and most UPS stores (you just need to call in advance to make sure a notary is available).
- Your funds for closing will need to be wired (no regular checks). Makes sure your account is set for wiring large amounts.
- MAKE SURE YOUR NAME/S ON AGREEMENTS AND CONTRACTS MATCH NAME ON YOUR DRIVER LICENSE SO THE NOTARY CAN APPROVE YOU AND YOUR SIGNATURE W/O ANY HICCUPS.
Simply Do It Team
Simply Do It Team
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