House Closing Timeline | 9 Steps to Closing on Your Florida Home
The closing timeline on your new house does not have to be confusing! In this video,I go over the 9 basic steps of what to expect and WHEN they occur..Always stay ahead in the process, and you'll have a smooth ride, all the way to the Closing Table!
Yea! You Found your ideal Home and you are now officially in contract for purchase of your new home.
The Closing timeline on a new home can seem like a confusing process, especially if you’ve never done it before! But it doesn’t have to BE.
I’m Lisa Kelly, Lakeland Homes and Lifestyles with Premier Realty.
Today, I’m going to clarify the 9 Basic steps of the closing timeline. By the end of this video you’ll know exactly what and when to expect during your closing process.
So let’s dive in!...
1. Open an Escrow account
Your First step is to make your Earnest Money Deposit or any other required deposit. This is held by a neutral party such an attorney or title company. In Florida, you have 72 hours from the time the last party signed your fully executed purchase contract.
2. Obtain a home inspection
You should hire a qualified third-party home inspector to inspect everything inside and outside. A separate inspection for pests is also necessary.
Depending on the age of the home and certain structures, you may also need a 4-point inspection in order to obtain homeowners insurance.
You’ll typically have 10-15 days to complete all your inspections. However, you’ll want to do your inspections right away, and not wait Just in case you need to negotiate repairs or adjustments to your purchase contract within your inspection period.
Which brings us to # 3. Renegotiate your purchase contract, if necessary
Most of our Florida purchase contracts are written “as-Is” with the right to inspect.
.So what happens if your inspector finds a major issue and you have an “as-is” contract?
In this case, the seller does not have to agree to any repairs or lower the purchase price..But doesn’t mean you can’t ask! In most cases it is in the sellers best interest to deal with the issues now, because these items will come to light again.
But for some reason the seller flat refuses to work with you, you can then back out of your contract and get your earnest money deposit refunded..
Just make sure you have stayed within your contractual timeline period.
4. Complete your mortgage application
If you are financing your new home, You will need to go through the mortgage application and approval process.
Your lender should have provided you with a list of documents they’ll need to start the process.
Your lender should also provide you with a loan estimate showing your terms, closing costs, estimated monthly payment . Hopefully, you already had your piliminary documents into your lender when you were pre-approved in order to sped up this part of the timeline.
While your lender is preparing your file for the first round of underwriting, Your appraisal will be ordered
5. The lender appraisal.
Most lenders will request an appraisal of the home’s value, and as the buyer, you typically pay the appraisal fee.
The goal is for the appraiser to value the home for at least as much as your agreed purchase price.
If the appraisal is low, you may need to renegotiate the price with the seller as a lender will approve only to the appraised amount.
6. Get homeowners insurance
Not all home owners insurance rates are the same. Shop around and get at least 3 quotes. Just make sure you are comparing rates with the same coverage. Ask your Realtor for a list of reputable home owner insurance brokers to call. You also may want to start with the company you have your car insurance through. Sometimes they offer ‘bundle’ discounts.
7. Time for the closing documents
Once your loan is approved, your lender will notify you that you are now CLEAR TO CLOSE! Congratulations! This Means you have successfully completed all the mortgage requirements! And you’re almost to the finish line!.
The escrow or title agent will now contact you to schedule the time of your closing and let you know what you need to bring to the closing table. This may include wiring instructions and closing disclosures.
It’s a good idea to review this with your attorney, if you have one, or your Realtor.
8. Final walkthrough of Your New Home
Right before your scheduled closing, you will do a final walkthrough of the home. This not a formal licensed inspection. It is simply to be reassured the home remains “as we know it” and nothing has been removed that is included in the purchase contract.
9. Sign on the dotted lines
The final step is to sign the papers. If you are financing, be prepared to sign A LOT! Some closing packages can be up to 100 pages long. Your closing agent with summarize all of these pages for you, However, one key thing to insure is correct is your interest rate and that there is no penalty for prepayment. Bring your attorney or Realtor with you if you’re not sure about translating all of the legalese.
After all the signing has been done, and wired closing funds received by the lender you are handed your keys!
Congratulations! You did it! You are now a Homeowner!
No two closings are alike, and we just discussed the basics here. Making sure you have experienced representatives that can head off potential problems before they happen, is the key to a smooth closing…… and really…the hardest part is the waiting!