What can I expect at the closing table?

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You are almost there!  Most of the hard part is behind you now.  Once the buyer has completed  inspections and you have worked out and completed all the requested repairs, you are headed into the home stretch.  At this point, you are waiting on confirmation that the buyers financing is complete, the final loan package has been sent to the closing attorney and you have been given a clear to close.  You should receive a copy of the preliminary HUD-1 for review at least a day before closing.  Don’t be surprised, however, if you don’t see one until you are sitting at the closing table.

HUD-1:

This document is what you will sign at closing that will have all the numbers associated with the transaction in one place.  You should get this document just before the closing from your Realtor and you should go over every line carefully to make sure all information is correct and that you understand what each line represents.  Your attorney will go over this in detail at the closing, but it is a good idea to head off any problems in advance so that you don’t have changes at the closing table.  If you have to make changes on the day of closing, it could delay the recording of the deed and your ability to get your funds.

Here is what you want to look for:

  • Make sure your name and the property address is correct.
  • Review the seller side to make sure the Purchase price is correct.  The seller side is the right side of the document.  It is a good idea to start on page 2 where the breakdown of all the seller paid closing costs are listed.  You will see the commission paid to the Real Estate Firm, any attorney fees, recording costs and doc stamp fees.  In NC, the seller must pay $2.00 per $1000 of the purchase price.
  • Review any additional costs such as a survey, contractor costs for repairs not paid, inspections done by the seller or anything else the seller needs to pay out of the proceeds.
  • Back on page one, make sure the purchase price is correct. Review any adjustments made for pro-rated taxes and HOA fees.    Seller fees from page 2 will also show up here to be deducted.  This page will show what the proceeds from the sale will be or if you need to come to the table with any funds.  There will be a few other sheets attached that will give more detail on where the numbers come from.

At closing, you will sign 5-6 copies for all parties.  This form needs to be correct and the lender for the buyer needs to approve it before funds can be released and the deed can be recorded.

DAY OF CLOSE:

All parties to the transaction must be present to sign unless other arrangements have already been made.  If you are unable to be at the closing, you will need to make arrangements to have the documents sent to you in advance so that you can sign and have notarized and get back to the attorney in time for the close.  You can also arrange to have a power of attorney  to allow someone else to sign for you.  In many states, even if the spouse is not on the deed, they will still need to sign to sell the home.  Please check with the closing attorney if you are unsure.  You will need to bring your ID and any funds (if necessary).

The attorney will normally sit down with all parties, get everyone’s ID’s and then review the HUD-1 Settlement Statement with everyone. If everything is correct, all parties will sign several copies and an original will be given to the seller, the buyer, the attorney and the agents.  There will be a few more documents you will need to sign along with the deed and then you are done!  You will not need to stay while the buyer signs their documents.

Please bring along any keys, remote controls and anything else the buyer will need for the home.  You may want to go over a few things with the new buyers before you leave such as alarm codes, important numbers or anything else that would be helpful.  This can be a very emotional time for many sellers and they want to be sure they have covered everything and know that their home is in good hands.

AFTER THE CLOSE:

After the buyers has signed all the loan documents, the attorney will fax or email the lender the final signed package for review.  They will then authorize the deed to be recorded and funds to be disbursed.  Normally, any funds you are expecting can be picked up the same day if the closing is done early enough.  In some cases, the recording of the deed can be delayed along with your funds The attorney will hold the keys until the deed has been recorded. Have patience and all things will get worked out in a timely manner.

That’s it!  You are done and on to your next home.

 

 

Other titles in the seller series:

Article #1: Seller Questions Answered – A preview to Listing your home for Sale
Article #2: What do I need to do to prepare my home for sale?
Article #3: Why do I need an Real Estate agent and how do I select one?
Article #4: I have signed the paperwork, now what? -What to expect during the listing period
Article #5: A buyer wants to see my home -How can I maximize showing opportunities?
Article #6: I have received an offer – now what?
Article #7: My home is under contract – What are the next steps?
Article #8: What can I do to prepare for my move?
Article #9: What can I expect at the closing table?
Article #10:  What happens after my home is SOLD?

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Home Style Title card

Sonya Leonard –Keller Williams Realty – Mooresville NC.  The Home Style Team provides free access to individualized home searches for all homes in Statesville, Mooresville, Troutman, Lake Norman and the entire Lake Norman Area.  Explore buyer and seller reports, community resources, new home communities, and be sure to sign up for instant alerts to help find your dream home.  Let Sonya help you INVEST in Real Estate and your Future! (704) 450-0588.

What can I do to prepare for my move?

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Preparing to move is a huge undertaking, but if done in an organized and strategic manner, it can go smoothly.  More than likely, you have already packed up some of your personal items to get ready for listing.  At this point, you need to start packing the rest and be all complete by the final walk-thru, allowing time for cleanup.

The quickest and easiest way to prepare for your move is to hire a moving company.  Many will show up a few days before closing and pack everything for you, label it and move it or store it until your are ready.  This is convenient but also more costly.  Another option is to pack yourself and have a POD delivered to your driveway to move at your leisure or pack up your items yourself and have movers come and pack the truck and move you. You can also rent a moving truck and move yourself.  You will decide based on your particular situation.

Packing:

If you choose to pack yourself, here are some tips to keep you on track:image

To get prepared for packing, you will need a variety of boxes of varying sizes and shapes, packing tape, markers, padding, newspaper and blankets.  You can go to a local moving company or U-haul and purchase boxes, order them online or you can pick up at Home Depot or Lowes.  Purchase a packing tape dispenser and labels.  You can also purchase colored packing tape pre-printed with the individual rooms on it.

One of the best strategies is to start with items you are not using on a daily basis and could do without for a few weeks.  Make a list of everything you are putting in the box and attach a label to the box.  This will make things easy to find and quick to locate.  Take the time to go through everything and weed out those items you no longer need.  This is a great time for “spring cleaning”.  Keep some boxes aside to donate or give away.

Make a list of essential items you will need immediately such as toiletries, a few changes of clothes, important documents, cooking supplies, toys, pet care products and anything else you may use on a daily basis that you cannot go without.  Keep these items in a specially marked box and keep them close to you.

 

Utilities:

You will need to call the utility companies at your new home to arrange service as well as set up a disconnect date for your current home.  The most critical are electricity and gas.  You can arrange phone, cable and garbage service when you arrive.  Be sure to disconnect any alarm, lawn, termite or newspaper services.

Mail:

You can go online or pick up a change of address form for the post office.  Be sure to leave your name and forwarding address for the new owners to that they can contact you if any mail slips through the cracks.  Have some new labels made up with your new address so that you can start notifying those you do business with.  You can change your address online with most of your creditors.

Medical Records:

Contact your doctor, dentist and vet to have any medical records transferred to your new location or get a copy to take with you.  Keep all important paperwork in a file for easy access.  You will also need school records if you have children.

Moving out of town or state:

If you are moving a long distance, don’t forget to check on any dry cleaning, photos, repair items or anything else you may have outside the home.  If you have  safe deposit box, you will need to empty it and transfer to a new bank.  You may also have to close out your bank accounts.

Best Tips:

Have a Checklist or two

Do a little at a time

Don’t Stress!  Have a great move and enjoy your new home.

 

Here are some sites with useful information on moving:

The Moving BLog

The Home Depot-Move

My Moving Reviews

 

Other titles in the seller series:

Article #1: Seller Questions Answered – A preview to Listing your home for Sale
Article #2: What do I need to do to prepare my home for sale?
Article #3: Why do I need an Real Estate agent and how do I select one?
Article #4: I have signed the paperwork, now what? -What to expect during the listing period
Article #5: A buyer wants to see my home -How can I maximize showing opportunities?
Article #6: I have received an offer – now what?
Article #7: My home is under contract – What are the next steps?
Article #8: What can I do to prepare for my move?
Article #9: What can I expect at the closing table?
Article #10:  What happens after my home is SOLD?

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Home Style Title card

Sonya Leonard –Keller Williams Realty – Mooresville NC.  The Home Style Team provides free access to individualized home searches for all homes in Statesville, Mooresville, Troutman, Lake Norman and the entire Lake Norman Area.  Explore buyer and seller reports, community resources, new home communities, and be sure to sign up for instant alerts to help find your dream home.  Let Sonya help you INVEST in Real Estate and your Future! (704) 450-0588.

My home is under contract – What are my next steps?

You have made it through the negotiations and accepted an offer on your home.  Now, your Realtor® is going to really get to work!  This part of the home sales process is one of the toughest.  There are many things during this critical period that can go the wrong direction without careful attention (and a little bit of crossed fingers).

Inspections:j0433856

Usually within the first week, the buyers agent will schedule inspections requested by the buyer.  You can usually expect the buyer to have a home inspection and pest inspection but you may also see a septic inspection, well inspection/water test, radon test and a survey. Let’s take a closer look at what you can  expect with each one:

  • Home Inspection: A licensed home inspector selected by the buyer will come to your home and spend between 2 to 4 hours checking out your home for problems.  They will be looking at just about everything and especially focusing on safety items.  The big items are the roof, electrical, plumbing, the heating/AC system, structure, insulation, windows/doors and siding.  They will check for any red flags like water intrusion, mold, rot and damage.  They will also check to make sure appliances are operational, plumbing fixtures work properly, windows and doors open and close, light fixtures work and fireplaces function.  Most inspectors are not concerned with small cosmetic issues.  They are there to make sure the home is safe and items are functioning as intended.
  • Pest inspection:  A licensed termite inspector will come out and carefully inspect the perimeter of the home, the basement/crawlspace, garage and interior, paying close attention to wood that may be in contact with the ground.  They are especially focusing on damaged wood caused by termite tunnels.
  • Septic Inspections: For homes that have their own septic system, it is highly recommended that a buyer have a septic inspection to make sure the system is operating properly.  The tank and leach field will be checked along with any alarms and pumps.
  • Well inspection/water test:  If the buyer is obtaining a government loan, a water test may be required by the lender.  The buyer will also want to ensure the pump is working properly and the water is safe to drink.  A small sample will be taken and sent to a lab for testing with results in 2-4 days.
  • Radon test:  Radon is a gas that comes up from the ground and can be trapped in your home that can cause many health problems.  Radon testing has become more popular in recent years and many areas are prone to radon.  It is often seen in homes with basements and many buyers will spend the extra money to have this testing done.  Radon can be mitigated but can be costly in some cases.
  • Survey:  Some buyers may want a survey done to identify the boundaries of the property and to ensure there are no encroachments.  They will research records for any right of ways or easements and verify acreage.

 

clipped images,cropped images,cropped pictures,icons,magnification,magnifying,magnifying glasses,PNG,searches,searching,transparent backgroundAfter all inspections have been completed, the buyers will go through all the reports and may come back to you to ask for items to be repaired or replaced.  This is all done during the Due Diligence period in North Carolina.  The buyer can ask for repairs, replacements or re-negotiate the contract and the seller will have a decision to make.  You can agree to some or all of the repairs or choose not to make any repairs.  These requests and negotiations can become very heated and emotional and many contracts have fallen apart at this point.  As a seller, one way you can make the inspections less stressful is to have inspections done before you list your home and be aware of any items that need to be repaired and then either fix them or let the buyer know upfront the asking price reflects known repairs that are needed.  If termites are found or past damage, you may have no choice but to treat your home as the buyers lender may not finance the home without it.  If your water test comes back with unacceptable results, you many need to treat your well and have a new test done and if Radon gas is found in high levels, you will probably be asked to have it mitigated by a professional.

Financing:

During this time, the buyer will be working with their lender to move the loan forward.  An appraiser will contact you to schedule a time to come out and appraise your home for the buyers lender.  Make sure you have looks it’s best  to showcase it’s features for the appraiser.  If the appraisal comes back too low, you will have another decision to make.  The buyer will most likely want to renegotiate the price of the home to match the market.

Due Diligence Date:

In NC, the buyer has up to this date to do all their “due Diligence” for the home. They must ensure their inspections are done, all paperwork has been reviewed, financing is on track and they still want to purchase the property.  The can ask for an extension of the Due Diligence date but the seller is not required to give an extension.  This date is critical as the buyer is saying “I am buying this house for sure” after this date.

Moving:deliveries,delivery vans,moving,moving vans,transportation,trucks,vans,vehicles

You have most likely been packing your home for the big move, but now the date is getting real close and you need to ensure you will have everything out before the final walk-thru and closing.  Be sure the home is cleaned out and cleaned up to avoid any delays.  The buyer will come out the day before or before closing to ensure the home is still in the same or better condition as it was when they first saw it.

Closing:

The buyer will have selected a closing attorney (North Carolina is an attorney state) to perform the closing.  You will normally have a settlement statement a couple days in advance of the close to review all the numbers and make sure everything is correct.  This will help avoid any last minute delays or problems but don’t be surprised if you don’t see one until you are sitting at the closing table.  On the close date, attend the closing, bring your id’s, keys, remotes and anything else the buyer may need.  You will go over the settlement statement again and sign the seller documents and then will most likely be asked to leave.  You do not need to stay while the buyer signs their loan documents.  The attorney will give the keys to the buyer when the deed is recorded.  Any funds you may be expecting will be disbursed after recording also.

 

My Best Tip: Be patient, be flexible and expect repair requests or delays.  In almost every transaction these days, there is almost always something that comes up that will try your patience but your agent will help you through the rough spots and get you to the end.

 

Other titles in the seller series:

Article #1: Seller Questions Answered – A preview to Listing your home for Sale
Article #2: What do I need to do to prepare my home for sale?
Article #3: Why do I need an Real Estate agent and how do I select one?
Article #4: I have signed the paperwork, now what? -What to expect during the listing period
Article #5: A buyer wants to see my home -How can I maximize showing opportunities?
Article #6: I have received an offer – now what?
Article #7: My home is under contract – What are the next steps?
Article #8: What can I do to prepare for my move?
Article #9: What can I expect at the closing table?
Article #10:  What happens after my home is SOLD?

 

 

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Home Style Title card

Sonya Leonard –Keller Williams Realty – Mooresville NC.  The Home Style Team provides free access to individualized home searches for all homes in Statesville, Mooresville, Troutman, Lake Norman and the entire Lake Norman Area.  Explore buyer and seller reports, community resources, new home communities, and be sure to sign up for instant alerts to help find your dream home.  Let Sonya help you INVEST in Real Estate and your Future! (704) 450-0588.