Home Buying and Closing Process

Step 1 Accepted Offer:

Immediate upon acceptance of your offer, we will send your ratified contract to your lender. This will facilitate on time closing. Now you and you lender can order the appraisal, and other necessary documents.

Step 2 Home Inspection:

The most important thing you need to do to hire a licensed home inspector. You need find a trustworthy individual. You may ask family and friends for someone. They may know some one or we can share a few names that had done a good job for our past clients. You can check our list, we do not have any affiliation with these companies.

Step 3 Contingency removal:

The most common contingencies are inspection, financing, if contingent offer it is the sale of your current home. These conditions must be removed or waived in writing before the sale on your new home can close. There are strict time lines that we will follow up very carefully thought out the transaction.

Step 4 Appraisal and title reports:

Your lender requires a formal appraisal to confirm the value of the home you’re buying. They use your home as a collateral asset to secure the loan. The title report indicates if there are any title issues. Your title company will need a clear title to assure that seller have the right to transfer ownership to you.

Step 5 Housekeeping items:

Approximately five days prior to closing, make sure that house is in same condition as agreed upon. Even sometimes in a brand new houses, equipment malfunctions. If seller had agreed to do any repairs, check if those are done. Get the utility companies information and set up for it to be turned on the estimated day of closing. Recheck disclosures.

Step 6 Prepare closing documents:

Escrow service companies prepare documents that confirm the transaction, prorate funds, etc. You should receive an Estimated Hud-1 (this explains the expenses and how much money would you need to bring to the table for closing. A reliable escrow company is very important to co-ordinate everything.

Step 7 Signing of loan documents:

This is critical time for both seller and the buyer. Documents have to be delivered to escrow, mostly by email. Your escrow company will need some time to get the docs ready for signing. It includes but not limited to printing, getting notary to schedule with your time schedule to get the docs signed and get those to the lender in a timely manner.

Step 8 Almost there:

Signed documents go to the lender for final review. This process may take anywhere from a day to 72 hours depending upon how your lender’s guidelines, for funding the loan. Let Escrow Company know where would you like your closing package to be delivered.

Step 9 Recording:

If you are in Orange County CA, your title rep can set up for a special recording on the same day. The deed is recorded and funds disbursed. The seller receives the proceeds the next day or 2 days later if you close Friday. The sale is considered closed when the deed is recorded.

Step 10 Getting the keys:

The most important and fun part of closing, is getting the keys. It will depend upon your initial contract if you get the keys same days or 3 days or more. Do not expect to get the keys before the recording of title due to liability issues for you and the seller. Yes, your moving van can arrive now. Welcome to your new home.

There are many opportunities for surprises or delays in a transaction. There are multiple parties companies and personalities involved in closing a home purchase. Part of our expertise is in troubleshooting problems that arise in the closing process, including anticipating and preparing for potential problems before they arise, and look for solutions early on.