Contracts signed - Copies will be mailed by the Title company or
delivered by realtor to the buyer and seller. Seller's Disclosure is
signed by the buyer - copies delivered by realtor. All paper work
will be forwarded to Title Company and Mortgage Company, as well
as the Earnest Money check that will be deposited at the title company.
The option fee check will be collected from the buyer and sent to the
seller. (The Earnest Money and option fee is credited to the Buyer
at closing). We will provide you with a list of deadlines that need
to be followed in accordance to the contract. We will help you follow
these and, for the buyer, we will fax the same deadline list to the
lender to help the lender be aware of approval deadlines.
Buyer's select home inspector - The property inspection must be
completed within the framework of the contract (usually 7-10 days).
Inspections and any repair estimates are paid by the buyer. This also
includes a termite inspection which is often needed by a buyer's mortgage
company. It is important that the buyer be present at the end of the
inspections to listen to the final report. The final written report may be
as long as 15 pages and will cover all major items of a home. For
example, the inspector should inspect the roof, foundation, electrical,
heat/air, plumbing and pool.
The inspection and bids or estimates for repairs need to be completed
prior to the "inspection period or option period" of the contract. If a
buyer needs bids and estimates, the buyer should contact professionals
in that field immediately to look at the repair and it is important that the buyer
communicate with this professional to understand the extent of the repair.
The buyer has the right to terminate for any reason in this time frame of the
option period, and it is important that this deadline date be observed. The
intent of this time period is to allow the buyer to make a sound and
comfortable decision to purchase or not purchase the home.
The inspection report should not be used as a punch list for repairs for the
seller, but major repairs such as foundation or roof repairs may be a reason to
renegotiate. Remember that if any renegotiating takes place, it needs to
be resolved prior to the end of the inspection period.
A seller should make any repairs they know of prior to the inspection.
It is always a good idea for the seller to have the Heat and Air Conditioner
serviced with a good cleaning, changing filters, etc. If the buyer decides
within the option period to not purchase the home, the buyer will lose his/her
option fee to the seller, but the buyer is entitled to their earnest money.
Buyer makes formal loan application - The quicker the initial paper work
is provided to the lender, the quicker the processing will be able to be
completed. The buyer should make sure they provide all the necessary
documents to their lender as soon as they are requested so that the loan
approval process can go quickly and smoothly. The buyer's lender should
provide a "Good Faith Estimate" to the buyer that shows all of the buyers
closing costs.
STEP TWO: (10 Days - 3 Weeks)
The inspection period should be close to completion.
The buyer's loan should be in processing. The appraisal is usually done
during the second or third week after loan application. The appraiser
usually takes a week to get a copy to the mortgage company. After two
weeks some of the buyer's verification should be coming in. After 2-3 weeks
second notices from the mortgage company will be requested for those items
not yet received from the buyer that the mortgage company may need. Buyers,
please tell your lender to have documents to the title company at least 4 days
prior to closing! This will ensure the buyer enough time to review the
lender's charges and to get a cashier's check from the bank.
The buyer should be checking into insurance companies and getting
quotes from several different companies at this time. The title company
will need to have a policy in hand for closing. We will be checking on a
regular basis with the mortgage company on all progress. Buyers
should have their insurance companies contact the title company.
Please keep in mind that the home you are buying or selling will continue
to be marketed during this time until all contingencies are removed. For
example, a contract pending sign is usually not placed on the sign
until all the inspections are worked out and until the buyer receives
financing approval. However, it must always be disclosed up front that there
is a contract on a home to any buyers or their agents if they are
considering showing the property. Usually open houses are not conducted
when a home is under contract.
STEP THREE: (3-4 Weeks)
The loan approval should be getting very close.
Utility Transfer: You will want to make sure utilities are transferred. This
has to be ordered by both parties at a mutually agreed upon date. We do
not want utilities disconnected, but rather transferred. We will provide you
with a list of utility companies and their phone numbers to better assist you.
STEP FOUR: (A few days prior to estimated closing date.)
Document Preparation: Once the loan has been approved, the mortgage
company will issue to the title company their instructions for exactly
what and how the documents must be prepared. We always push the
mortgage company to get their documents to the title company as soon as
possible, so nothing is "last minute", but often the mortgage companies
can get backed up and may not send their documents until the day before
closing.
As soon as the title company receives this they will prepare a document
that breaks down all the costs (Called HUD 1) that they will fax
this to you. If you feel information is confidential, you will need to coordinate
with the title company a time where you can catch the incoming fax. We
will then review this and make sure that all the numbers are as exactly as
the lender or we have outlined for you. Feel free to call your closer at
the title company for any questions regarding taxes, title policy, survey
or title fee information.
Someone from The Miller Team will usually be closing with you (unless
you are out-of-town and close by Fed-Ex). Please note that if you
are out-of-town for a closing, the title company will charge you any Federal
Express fees incurred and you will need a notary present at the time
the documents are signed.
As a seller, you will receive a check for the amount owed to you by the
Title Company, after the buyer has signed the necessary closing papers,
and the money has been funded. As a seller, we can arrange to have
funds wired to your account, we will just need wiring instructions. Keep in
mind that funding can often take several hours after all parties have
signed, and sellers will not receive a check until then.
As a buyer, you will need to bring to closing a cashier's check made
out to the title company for the exact amount that was designated
at the bottom of the HUD1. Make sure to bring your drivers license to
the Title Company, for they will need it for identification.
As a Buyer, you may be signing as many as 50 legal-sized documents
and closings usually last an hour or an hour and a half. If you wish
to read through each document carefully prior to closing, please let
The Miller Team know so we can tell the title company to courier them
to you before closing. If a second lien is involved, the amount of documents
to sign will increase for the Borrower.
The Seller will not have as many documents to sign and the closing
usually lasts 30 minutes to an hour. After you have signed all the
papers, the "package" will be fully notarized and forwarded to the
mortgage company to fund the home loan. Every mortgage company
has different "funding" deadlines...most are before noon... The
buyers are usually scheduled for closing as early as possible in the
morning and the sellers a little later. Sometimes this is not possible,
but the title company, mortgage company and the realtors will do
everything in our power to see that we close in a timely fashion.
The sellers will come in and sign a few documents for their side, often
sellers do not receive a cashiers check immediately after signing. Signed
documents must be faxed to the mortgage company for proof of sale
and then the check can be cut, this can take several hours. The current
mortgage and any taxes due will be collected for and paid out by the title
company. If the seller will be remaining in the house and rent is to be
paid, this will be collected and held by the title company.
We will furnish to the buyers a key at the time of closing or
funding. Sellers, please leave all additional keys and garage door
openers in the kitchen as you leave the house. It is our hope that
all sellers will be courteous and leave the house clean for the new
owners. If you need assistance in finding a cleaning company
come in and do this for you please let us know. We have several
people who will do this for a nominal fee. It would be nice to have
the yard cut also if needed. The buyers would appreciate any manuals
explaining appliance use and care as well as warranties. If you have
paint or wallpaper samples or floor plans these are always helpful! It
is our hope that the Golden Rule will be used by all and that each
party's move will be happy even if it is exhausting!
This has been prepared as a request from buyers and sellers in the past
to help you feel more comfortable with what to expect and when. We
are always striving to improve our service to you - our cherished customers.
Please know that your comments are always welcome.
If you have any questions feel free to call us at 214-522-9365.
Our business relies on your referrals. Please tell others about us!
