Following up on Your Real Estate Transaction
Controlling closing costs and plans.

The Transaction Process: After Offer is Accepted

After your offer has been accepted, and we move toward closing, there are certain things that must be addressed before everything is final. In this helpful resource we will provide you with different tips, as well as what you can expect when it comes time for closing.

Escrow / Broker

They are neutral third parties that hold documents and money for a real estate transaction, and work to ensure that all conditions of a sale are met.  The Escrow/Broker also refers to a special account that a lender will use to hold a borrower's monthly payments on property taxes and insurance.   

It is no secret that much has to happen before you close, and that is why it is imperative that you stay on top of the details, so you can close on time, keep costs down, and understand everything you sign.

Control Closing Costs

Did you know that most closing costs will usually equal about 2 - 7 percent of your home's sales price?  Normally these costs will need to be paid by you in cash, on top of the money you have already earmarked for a down payment.  In some cases, your lender may come to an agreement with you, and will add the fees to the total loan amount that you owe. This would be a benefit to you, as you would then be able to pay them off in monthly installments.

Federal Law States that your lender must provide a detailed estimate of your closing costs, within three days after your loan application is received by them.  You need to start planning for these costs as soon as possible, and ask your lender to include those costs as part or your loan amount, if you want to make the most out of minimizing the total value of cash you will need in order to close the sale.

Develop a Schedule to Create a Closing Plan that completes tasks on time.

Everyone involved in your transaction is required to perform multiple tasks before you will be able to close on your home. To help you create a "closing plan" use our provided checklist to make the process more organized and easier.  You will find with the checklist that you can manage the work better, and keep the closing process on track.

Your Closing Plan

By keeping yourself organized, you will be able to get ahead so you can prepare yourself for the tasks required for closing. Make sure that you complete any remaining tasks, and make all final arrangements.  Prepare yourself for the closing, by familiarizing yourself with the right papers, and knowing where to sign. And don't forget to bring the right papers with you to the closing!

Know the Paperwork

When you know what paperwork to expect, you will be better prepared when it comes time to close.  The following is a list of the most important closing-related documents to give you an idea of what you can expect when the time comes to make the closing:

• Form 1003 - This is a standard loan application that is approximately 3-6 pages long, and it is used by most US lenders.
• Inspection Report - This is a special report of approximately 5-20 pages that is on the condition of the house, which includes an examination of appliances, plumbing, electrical systems, roof and structure.
• Closing Cost Estimate - This approximate 1- 2 page form is a disclosure form the lender will provide in order to estimate the cost of various transaction-related expenses, which covers from loan points to pest-control reports.
• Deed of Trust - This is usually a 2 page document that in some states is often substituted for a mortgage. This document is what helps to establish both yours and the lender's interest in the property, and its purpose is to define each party's obligations.
• Warranty Deed - This is a deed that is used in the State of New York to show that the owner (grantor) has a good and merchantable title to the property that he is conveying (to the grantee).  This warranty deed is about 2 pages in length.
• Bond and Mortgage - This paperwork is about 2-4 pages in length, and is used in the State of New York to evidence of the debt (Bond), and to pledge the described property as the collateral for that debt (mortgage).

You may also be interested in learning about other details that apply once you have successfully purchased your property such as Home Warranty, Home Inspection and Title Insurance.  Visit these resource pages to learn more about how you can protect yourself and your home.

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