Good Faith Deposit
(within 3 days of acceptance) The deposit amount offered must be released to the escrow after acceptance. Please arrange to have the funds directly sent to escrow – by check or wire.
Verification of Funds
(within 7 days of acceptance) You will need to provide verification of funds (down payment or cash deal) to the seller. This can be a VOF statement from your banker, or a copy of a bank account with the funds available (with account number removed).
Physical - you will arrange for a physical inspection by a certified inspector who will inspect the property on your behalf. It is expected that you be present, if at all possible, for the inspection. The fee is paid at that time. (I will be there for the entire inspection) You will receive a written report. This is a good time to get to know the property and to identify any issues relevant to the sale and upkeep. If you do not wish to have an inspection you may waive it.
Other – If the physical inspection indicates some other inspections suggested you may want to arrange for further inspections. All must be done before the Contingency Removal Date. I have inspectors I can recommend.
Appraisal – Your lender will provide a Good Faith Estimate for you. After you have satisfied yourself with a physical inspection, and are ready to move forward, you should contact your lender who will then request an appraisal. You may be asked to pay for the appraisal up front.
Loan – You will be working closely with your lender to provide all necessary items quickly. You and your lender will need to be comfortable that you can get your loan before the Contingency Removal Date. (Note that FHA loans require the property to be in well maintained condition. They might require some repair/modification prior to closing.)
Depending upon the contract agreement, a termite inspection will normally be done. IF any “Section 1 – meaning ACTIVE” work is required it must be done before the close of escrow. If the contract does not address termite the appraisal can also identify termite issues and they will need to be resolved before close of escrow.
You will need to arrange for insurance for the property prior to the close of escrow. I do have referrals for you if needed.
You might want to consider a Home Warranty plan for at least the first year. Sometimes the seller pays for this, many times not. You can pay for your own – approx $300-$450 depending on size and coverage.
Preliminary Title – you will receive a copy of the preliminary title information, for review, prior to the issuance of title insurance.
Natural Hazard Report – A thorough report will be provided regarding the known natural hazards in the area. Review carefully.
Earthquake and Local Area Disclosures – Additional information about safety and any known local area disclosures.
Disclosures – the Seller will provide all disclosures regarding the condition of the property and any known issues or repairs.
Removal of Contingencies
(17 Days from Acceptance) You will have the agreed upon number of days to satisfy yourself that the property is in the contrition you expected, that you can arrange for financing or cash, that the home appraised for the expected amount, that you have received and reviewed all disclosures. You will be asked to remove these contingencies in writing. Once this is completed, you will be committed to the deal.
Walk Through – Three days before close we will want to walk through and then sign off that the property is in the expected condition.
At the End of Escrow… – You will be signing loan documents with the lender a few days before the close of escrow. They often ask for a few more items (conditions) to be provided at the last minute! Once loan docs are signed the lender will “fund” the loan, the escrow company will “record” the title and deed the next day. Once that is done, we get the call that “it’s recorded” and the property is yours!
Keys - On the close of escrow day we will meet and you will be given the keys. You might consider “re-keying” the doors.