RESOURCES
Your Next Move
The offer you made to purchase your new home has been accepted by the seller. What happens next? What should you be doing now? Following are some guidelines to let you know what happens at each stage, how you are involved, and the steps to go from offer to owner.
1. Contact your Home Loan Specialist at Awareness Home Funding.
Since Awareness Home Funding pre-approved you for your mortgage, you were able to write an offer with confidence. (If you were not pre-approved, it is critical that you meet with one of our Awareness Home Funding Loan Specialists soon!!) Whether you were guided by a Real Estate professional or negotiated on your own, the purchase agreement must be in writing and signed by all the involved parties. It is important to send a copy to your Awareness Home Funding Loan Specialist (even if you were pre-approved) to discuss the details of your particular purchase agreement and to review your financing options. Once you have the purchase agreement in place, this is your opportunity to “lock” the best available current interest rate.
2. Home Inspection.
You and your Real Estate Agent will arrange for a Home Inspection. This is normally done within a few days of the signing of the purchase agreement. While a home inspection is not required, Awareness Home Funding does highly recommend it! A professional licensed home inspector will complete a thorough inspection of the property and issue a written report for your review. Often you will find it useful to accompany the inspector on his/her inspection of your new home. Normally, your purchase offer is contingent on your home inspection. If inspections are not satisfactory, you have an opportunity to cancel the transaction or negotiate with the seller to complete the repairs. Time is of the essence! Purchase agreements allow you only a defined time period (often 7-10 days) to complete and accept or reject the inspection.
3. Title insurance.
While you are completing the home inspection, Awareness Home Funding, in cooperation with your Real Estate Agent, orders the Title Search through a Title Insurance Company. The Title Company conducts a Title Search and prepares a Commitment to issue Title Insurance. The Title Commitment includes the current owners of the property, liens on the property (such as mortgages), legal description, permanent parcel number and real estate tax information.
4. Appraisal.
After your inspections are complete and acceptable, your Awareness Home Funding Loan Specialist will order an appraisal from one of our partner appraisers. An appraisal will cost approximately $350 - $500 (depending on your state and loan type) and is a requirement for almost all mortgages. The appraiser compares your new home with other similar properties that have been sold recently to determine the fair market value.
5. Survey.
This could be required by your purchase agreement, the Title Commitment or lender. If one is, your Awareness Home Funding Loan Specialist or Real Estate Agent will order a survey (or review an existing survey) for you.
6. Home Owner’s Insurance.
While the purchase process is being completed, it is time for you to shop for Home Owner’s Insurance. (You might also hear this referred to as Hazard Insurance.) Once you have identified the Insurance Agent you plan to use, contact your Awareness Home Funding Loan Specialist with the information. From this point, we will work with your Insurance Agent to coordinate the necessary information.
7. Final approval and “Clear-to-close”.
With all the mortgage and property requirements completed, it is time to schedule the actual closing date! Again, your Awareness Home Funding Loan Specialist will assist in coordinating this between you and the title office.
8. Preparation for the closing.
You and your Real Estate Agent will conduct a final walk through of the property. This is your opportunity to verify that repairs have been completed. You can also verify that any items to be left at the property (per your purchase agreement) are in your home.
9. Transfer Utilities into your Name.
Often, this is discussed at the closing, but if you are to receive “possession at close”, you will want to have these items handled in advance.
10. Certified Funds for the Closing.
The Title Company will calculate the exact amount of funds required to close. Your Awareness Home Funding Loan Specialist will contact you with the exact number a day or two before the closing. It should be very similar to the estimate prepared during the mortgage process (the Good Faith Estimate). You will need to bring a Cashier’s Check made payable to the Title Company for the exact amount of funds required.
11. The Celebration!
(Some lenders will call this the closing, but Awareness Home Funding likes to celebrate your new home with you.) The celebration usually takes 30-60 minutes. Please remember to bring: your driver’s license for identification, your certified funds to close, and a paid receipt for your Home Owner’s Insurance policy. The closer from the Title Company will present the mortgage and title documents for signature. Your Real Estate Agent and, if possible, Awareness Home Funding Loan Specialist will also be present to answer any questions. The closer will distribute funds based on your purchase agreement and the requirements for your state. Congratulations! You are now Awareness Home Funding’s newest homeowner!!
12. Everybody Wins.
Awareness Home Funding has the distinct pleasure of donating $250 for each mortgage closed to a charity of your choice. It’s our way of saying, “Thank you”. You win with your new home and a mortgage tailored to your needs. Your charity wins with your support and a nice donation. We win with a new friendship made. Everybody benefits.
13. Refer Others.
Let your family, friends and coworkers know about the benefits of having Awareness Home Funding help them with the mortgage process. Then, let us know about other charities you think would like having $250 donated to them on a regular basis.
