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Closing Checklist

  • T MINUS 45 Days
  • Negotiable Items Upon Initial Offer
  • Purchase price
  • Seller Concessions for buyer's closing costs
  • 3% is normal in my area
  • Closing Date
  • usually mortgage companies need 45 days to close
  • date we sign everything
  • transfer date
  • 1-3 days after closing date
  • this is the date the deed will be recorded
  • title company
  • always try to use your preferred title co
  • name and Phone number of contact person written into the contract
  • Emerald Glen Title
  • Karen Danko
  • 440-347-0336
  • Inspections and Dates of inspections
  • General Home
  • Pest
  • Radon
  • Septic
  • earnest money
  • is it a promissory note
  • or check from the buyer deposited into the buyer's brokers trust acct?
  • home warranty
  • who pays for it
  • normally the seller pays for it for the buyer
  • Costs $475 in My Area
  • HMS
  • America's Preferred Warranty
  • Sign addendums
  • walk thru addendum
  • what date are the buyer going to walk thru to approve everything prior to closing
  • usually 2 days prior to closing and signing the HUD 1
  • Sign other misc. addendums
  • these can vary widely depending on what the buyer and seller want
  • what’s going to stay with the house
  • what’s leaving with the seller
  • chattel
  • "what items are staying with the house
  • appliances
  • Sign P&S agreement
  • buyer and seller need to agree on the following
  • Purchase price
  • Seller Concessions
  • 3% is normal in my area
  • Closing Date
  • usually mortgage companies need 45 days to close
  • make sure the closing date and transfer dates are during the normal work week
  • no weekends
  • Tuesday thru Thursday
  • no Mondays or Fridays
  • transfer date
  • 1-3 days after closing date
  • this is the date the deed will be recorded
  • title company
  • always try to use your preferred title co
  • name and Phone number of contact person written into the contract
  • Inspections and Dates
  • General Home
  • Pest
  • Radon
  • Septic
  • earnest money
  • is it a promissory note
  • or check deposit into the buyer's brokers trust acct?
  • home warranty
  • who pays for it
  • normally the seller pays for it for the buyer
  • Costs $475 in My Area
  • HMS
  • America's Preferred Warranty
  • 8575_Melody_Ln_Macedonia_OH_44056 P&S agreement 3.24.13.pdf
  • Ballash Contract with buyer 4.2.13.pdf
  • Sign addendums
  • walk thru addendum
  • what date are they going to walk thru to approve everything
  • usually 2 days prior to closing and signing the HUD 1
  • Sign other misc. addendums
  • these can vary widely depending on what the buyer and seller want
  • Sign agency forms
  • Agency Disclosure Statement
  • Who is representing who?
  • Sign Property Disclosure
  • Residential Property Disclosure Statement
  • signed by seller and buyer
  • IMPORTANT
  • Lead Based Paint Disclosure
  • signed by seller and buyer
  • Once the P&S agreement is signed and executed YOU ARE NOW UNDER CONTRACT
  • this starts the clock ticking towards the closing date
  • normally 45 days later
  • T MINUS 42 DAYS
  • Send P&S agreements / addendums / disclosures / agency forms / realtor escrow letters to title company
  • listing agent
  • buyers agent
  • most times it’s both
  • Title Company immediately pulls new title search
  • ESCROW IS OPEN
  • TITLE
  • title company requests payoffs from mortgage holders
  • your private lenders liens would have been recorded so they should be on the title search
  • looking for liens that need paid off
  • Local City Point of Sale Inspections ordered
  • real estate agents - typically the buyer’s agent
  • T MINUS 38 Days
  • Buyers required to make written loan application with mortgage company within 7 days of contract execution : LENDERS CLOCK IS TICKING
  • last 2 years W-2's
  • last 2 years tax returns
  • last 2 months pay stubs
  • last 2 months bank statements
  • proof of employment verified
  • credit pulled
  • from all the bureaus
  • Lender orders appraisal
  • SOME LENDERS WILL NOT ORDER APPRAISAL UNTIL THEY GET ALL BUYER LOAN DOCS
  • can hold up things
  • Inspections are order and due to be performed within 7 days of contract execution
  • normally general home, pest, septic and radon are done within 7 days on contract acceptance and execution
  • buyers agent normally directs this for the buyer and schedules at the property with the vendors
  • T MINUS 35 Days
  • Once inspections are done the buyer and seller either
  • agree to remove the inspection contingencies
  • OR
  • the seller and buyer negotiate the "punch list" of things that need done
  • EXAMPLE
  • buyer wants everything done
  • Buyer Requested repairs
  • seller wants to pay for nothing
  • seller will pay for half
  • it's a negotiating point
  • Appraisal
  • buyers agent directs lenders appraisal date and scheduling with seller's agent
  • Local City Point of Sale Inspections Completed
  • Once Local P.O.S. inspections are done the buyer and seller either
  • agree to remove the inspection contingencies
  • IF there's no POS violations
  • OR
  • the seller and buyer negotiate the "punch list" of things that need done
  • EXAMPLE
  • buyer wants everything done
  • Buyer Requested repairs
  • seller wants to pay for nothing
  • seller will pay for half
  • it's a negotiating point
  • OR
  • Buyer Can ASSUME Violations
  • buyer may need to escrow money based on city code
  • buyer typically has 90 days to fix violations after transfer
  • T MINUS 28 Days
  • Lender Requested Repairs
  • FHA repairs
  • typically prefer all work to be done PRIOR to lender appraisal
  • the seller and buyer negotiate the "punch list" of things that need done
  • EXAMPLE
  • Lender REQUIRES everything done
  • Buyer wants the seller to pay for everything
  • seller wants to pay for nothing
  • seller will pay for half
  • buyer will pay for half
  • it's a negotiating point BUT lender repairs MUST BE DONE prior to closing or NO LOAN APPROVAL
  • T MINUS 21 Days
  • double check everything above is being done and moving forward
  • T MINUS 14 Days
  • ALL REPAIRS are completed
  • POS Repairs
  • Lender Repairs
  • Buyer Repairs
  • re-inspections are done by lender and or buyer
  • contingencies removed
  • T MINUS 7 Days
  • Financing are due to be approved
  • buyer financing is normally due to be approved within 2 days of scheduled closing date
  • like to get a conditional approval half way thru the process
  • "CONDITIONS" from the lender
  • title company requests payoffs from mortgage holders
  • Any Mortgages need to provide a payoff letter for their mortgages
  • Payoff Instruction Email 5.5.13 8575 1st mortgage payoff 8575 melody lane 1st vagt 66k Payoff.docx
  • Payoff Instruction Email 5.3.13 8575 2nd mortgage payoff 8575 melody lane 2nd tobias 20k Payoff.docx
  • Payoff Instruction Email 5.5.13 8575 1st mortgage payoff 7493 Ballash Rd Medina 86k rob Russell 1st mortgage 5.30.13.docx
  • Tobias signed payoff 5.7.13.pdf
  • T MINUS 4 Days
  • remove all seller items from house
  • clean out
  • staging
  • decorations
  • misc.
  • proceeds wire instructions
  • seller instructs title company to wire or send escrow check for the final proceeds to their acct
  • Realtors submit a "escrow letter" instructing the title company to pay "X" amount of commissions
  • SCR-Escrow-Letter-2013-3-2-13.pdf
  • 8575 Melody commission check 600 sharp 5.10.13.pdf
  • T MINUS 2 Days
  • Buyer walk thru
  • 2 days prior to closing
  • Once walk thru is done and everything’s approved you are set to close
  • buyer walk thru contingency has now been met and can be removed
  • "Clear to close" is given by Mortgage Company
  • FINAL APPROVAL BY LENDER IS COMPLETE
  • THIS IS A BIG DEAL!!!!!!!!!
  • T MINUS 1 Days
  • Buyer Loan Package is sent from mortgage company to title company
  • Title Company creates the HUD 1 and final closing papers for seller and buyer
  • 193 heights drive final HUD 1 1.17.13.pdf
  • 8575 preliminary HUD 1 draft 5.6.13.pdf
  • Title company emails the HUD 1 to buyer and seller for pre-approval
  • Double check all fees on the HUD1 to make sure they are accurate
  • give the HUD1 to your sellers / listing agent to review for you - double check the fees
  • Once approved the seller and buyer are scheduled to sign their papers
  • CLOSE DATE - T MINUS ZERO = BLAST OFF
  • Closing appointment takes place
  • "Closer" for title company ALWAYS needs a copy of the sellers and buyers DRIVER's LICENSE
  • proof of person
  • all final signed closing papers are taken back to title company for review
  • title company reviews final signed HUD 1, deed and mortgages and releases and all papers
  • title company give the "O.K" that the final closing package is signed and complete
  • T PLUS ZERO - 1 Day
  • Title company physically goes to courthouse and records the new deed
  • this is called "FILING"
  • title company also records a release of any of the existing mortgages and liens on title
  • property is free and clear of old mortgage and new mortgage is recorded (buyers mortgage)
  • "TRANSFER"
  • keys are exchanged
  • lock box removed
  • signs removed
  • T PLUS ZERO -3 Days
  • Title Company "FUNDS" all expenses on the FINAL HUD 1
  • pays of mortgages
  • pays property taxes
  • pays title insurance
  • pays all closing fees
  • pays realtor commissions
  • pays sellers proceeds to sellers acct via wire or check
  • this is called "FUNDING"
  • T PLUS 2-7 days
  • title company sends final HUD 1 to seller and buyer in mail

sometimes seller and buyer need to sign HUD 1 again b/c there's "After Closing" adjustments

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