Timeline to Home Ownership - Within Three Months

The final post in this series is being written with the assumption that the buyer is now under contract to purchase their chosen property and that a dedicated buyer’s agent is fully invested in the process.

Help Your Resources Keep things Moving –The agents, lender and attorney will request a few things once a contract to purchase is in place, so please have copies handy for that purpose. The earnest money (where applicable – and it usually is) should have already been turned over to the buyer’s agent. The lender will immediately need a copy of the contract signed by both parties, updated paystubs, updated bank statements, first time home buyer class certificates, employer human resource contacts and more. The closing attorney will want a copy of the executory purchase and sale contract, borrower contact information, lender contact information, hazard insurance provider contact information, home warranty information and more. Please be prepared to patiently send some or all of the requested items more than once.

Ask the lender for and then review the Good Faith Estimate for accuracy and to ensure that the funds required of the borrower to close are or will be available at the time of settlement. These estimates should match very closely with the preliminary HUD statement to be provided within days of the closing date.

Know the Rights Provided for in the Agreement – Contract documents often vary by property, seller, type of purchase transaction and a number of other ways. It is important, therefore, to know what rights are provided to the buyer in that document along with their time frames before a contract is established and earnest money deposited. The buyer’s agent should clearly explain the document terms

• Whether home inspections are allowed, the type of home inspection allowed, when they must be completed, who connects the utilities for those inspections and the borrower’s options should the property be deemed unacceptable.
• The length of time that the lender has to provide a commitment letter
• The disbursement of earnest money in the event of default by either party
  

Relocating to the New Place – There is the small matter of moving that also must be considered. Here are a few family matters that will need attention along with the purchase of the new property.

• Forward mail
• Advise financial institutions, employer, friends and family of the upcoming move
• Connect / disconnect utilities
• Contact schools at new / old locations
• Arrange for the move to the new residence
• Honor commitments and responsibilities associated with ending possession of the previous residence
  

Prepare for Settlement – It is an exciting time, but preparation will help ease some of the nervousness often associated with closing on the purchase of a property.

• Notify the closing attorney’s office well in advance of any potential language barriers
• Request a blank closing packet. The closing attorney should explain each document that the borrower will be asked to sign, but time may not be available to read through all of them at the table.
• Review the preliminary HUD statement to confirm accuracy and that the funds required of the borrower to close are available
• Confirm how the closing attorney prefers to receive funds required of the borrower to close (wiring instructions, certified funds, etc.)
• Get directions to the closing attorney’s office
• Have a government-issued ID and personal checkbook
• Arrange for child care during closing
  

Finally, please know that closing dates change frequently, often disrupting plans with movers, landlords and employers. The first monthly mortgage payment is often several weeks away making it unlikely that a final rent and first mortgage payment will be due consecutively, so plan to close a few weeks earlier than the “must-move” date to limit stress and allow for any disruptions.

Many HUD-certified Affordable Housing Agencies offer post-closing home ownership classes to home owners who want to understand their rights, budgeting, saving, home care and a variety of other useful subjects designed to help them maintain and keep their home. Call or write for more details on these and other programs available to Georgia home owners that ease the path to home ownership. Like Metro Atlanta Down Payment Assistance on Facebook for updates on Georgia Down Payment Assistance, buying Atlanta area residential real estate and more.

Solomon Greene
REALTOR® Keller Williams Realty Atlanta Partners
(678) 775-2677