Buying a Raleigh Home | 7 Things You Need To Do Between Contract and Closing
January 4th, 2008 Categories: Buying a Home
You’re relocating to Raleigh. We just found the home of your dreams and it’s under contract. What do you need to do now to assure a smooth, stress-free closing?
1. Schedule Inspections
If you’re using me as your buyer agent, we will be looking at our agendas while writing the contract to pick a date for the inspections. We also will be phoning the inspector to find out his availability relative to our schedules.
The standard North Carolina real estate contract was revised in July this year and now several dates have time is of the essence language added to them. This is legal speak that means the date is critically important and if you miss it, there will be consequences.
We have to specify a date in the offer called the inspection date. This is the date by which all inspections must be completed and a formal repair request must be in the hands of the seller, or their agent. The time is of the essence language now applies to the inspection date.
If this date passes and the repair request is not submitted, then the buyer has by default accepted the home in it’s current condition. Don’t pass up a chance to get important repairs made to your home.
2. Apply for Your Loan
The time is of the essence thing applies here too. Usually the best I can get in any given negotiation is five days to apply for the loan. If the seller request verification of loan application and it cannot be provided, they can terminate the contract and keep any earnest money deposit. Serious stuff!
If you are using me as your buyer agent, you will already have been counseled to choose a lender prior to the contract being written. This is just one of many ways to avoid stress during the home buying process, and to protect you from financial damages.
3. Contact Your Insurance Agent
There is no time is of the essence applicability to home owners insurance, but you cannot close without it. And it must be finalized and in the hands of the lender and closing attorney several days prior to closing.
This usually only involves a quick phone call to your agent, so go ahead and make the call sooner rather than later. A good way to remember this is to do it right after applying for the loan. Also, if there are any problems with insurability, we would rather know while there is some time to deal with the issue.
4. Respond to Lender/Attorney/Realtor Requests Immediately
You will get numerous requests for information and documentation after we are under contract. Most of this will come from the lender and closing attorney. Respond promptly. It keeps things moving along and helps assure that closing will occur on the scheduled date.
5. Schedule Movers and Leave Wiggle Room
Every attempt will be made to close on time. If I’m your agent, and especially if you are using a lender and closing attorney that I know and trust, these people will go to great lengths to discover problems and possible delays far in advance of closing day.
Having said all that, there still remains a possibility that a delay in the closing date could occur. The opportunity for this seems to increase with new construction. Try to avoid scheduling the movers for one hour after closing. It’s actually best to schedule the movers for the next day and to have a contingency plan in place with them to deal with any delay beyond that.
6. Schedule Utility Transfer
This can be done at any time and should always be completed at least one week prior to closing. Call the utility companies and tell them you want to transfer service into your name. This avoids any interruption in service and may save you a connection fee.
7. Put Closing Funds in Local Bank
You will have to bring a certified check to closing. Go ahead and set up a local account, if you do not already have one. Transfer sufficient funds into the account to cover the estimated closing costs, plus a little extra.
Don’t get yourself into the stressful situation of having to have a check sent over night from an out of state bank only to find out the amount changed a little bit at the last moment. It is no fun having to wait an extra day to close while a revised check is sent over night, again.
Something NOT To Do
Do not make any large purchases, change jobs, or any other activity that could alter your financial position and possibly cause you to no longer qualify for financing. In most cases, this would cause you to not only loose the home of your dreams, but also any earnest money deposit. You would also be responsible for any inspection, appraisal or survey fees that have already been incurred on your behalf.
Following these guidelines will make your home buying experience a pleasant one. If I’m representing you, I’ll be right there every step of the way to make sure closing is a fun and memorable event. Call me at 919–602–7000, or email me with any questions.
