Once you have received an accepted offer on a Delavan home, what do you do next? Hopefully, you have hired an experienced Delavan real estate professional and Delavan real estate attorney to assist you through the stressful contract-to-closing period. A skillful real estate professional will help you through the minor details and hiccups that may occur during the process. Your Delavan real estate attorney will make sure all legal documents, correspondence, and closing criteria are lawfully met. Below is a breakdown of what to expect during the contract-to-closing period.
1. Choose a Delavan real estate attorney. As the home buyer, it is your choice to select a Delavan real estate attorney, sometimes referred to as a “closing attorney”. Your Delavan real estate attorney will review all contracts, prepare settlement statements, order a title search, order title insurance, and ensure lender funds are available for closing.
2. Order a survey. Your financial institution may require a survey of the real estate property. As the buyer, you are normally required to pay for the survey. There are two ways to save money on a survey. One, there may already be a recent survey on record. Two, if there is an older survey, you may only need to ask for an updated survey from the surveyor.
3. Order an appraisal. Lenders usually require the real estate property to be appraised. A financial institution normally will not commit to a loan until an appraisal is completed. A lender obviously is not going to provide you with a $100,000 loan on a home that appraises for $19,000. As the buyer, you are often required to pay for the appraisal.
4. Obtain a Loan Commitment Letter. Once your real estate property is appraised, and all other required criteria are met, you will be issued a Loan Commitment Letter from your lender. A Loan Commitment Letter usually states that you will receive a loan from the lender in the amount necessary to purchase the real estate property, so long as certain conditions are met. The criteria normally includes: an appraisal, a survey, any requested repairs, any necessary inspections, no changes to your current credit standing.
5. Order inspections. Some financial institutions require inspections. Some do not. If your lender does not require any inspections, then ordering any inspection is completely voluntary on your part. That being said, it is highly recommended to have a general home inspection conducted by a licensed home inspector, whether it is required or not. You may also wish or be required to have other inspections conducted, such as a termite inspection, well and water quality inspection, septic inspections, radon inspections, chimney inspections, lead-based paint inspections, etc.
6. Acquire a Certificate of Occupancy. If you are purchasing a brand new home, most likely from a builder, you will need to provide a Certificate of Occupancy at closing. The builder will obtain the certificate. The certificate certifies that the home has met all building codes.
7. Confirm a closing date. Your sales contact normally lists an approximate closing date. After loan approval and all necessary inspections and repairs are completed, a definitive closing date and time is set.
8. Purchase home owner’s insurance. All lenders require that buyers purchase home owner’s insurance. This type of insurance protects the lender from loss if the home is damaged or destroyed during fire, natural disasters, etc. Some lenders only require you purchase home owner’s insurance in the amount equal to your loan. Even better, is to purchase coverage equal to the replacement cost of your property. You normally have to pay for the entire first year in advance. After that, you can typically set up monthly payments. Sometimes, you can roll your home owner’s insurance cost into your mortgage payment. Ask your lender.
9. Review HUD-1 Settlement Statement. Your Delavan real estate attorney completes a HUD-1 Settlement Statement during the contract-to-closing period. You can request to review the statement at least 24 hours before closing to ensure there are no issues.
10. Final walk-through. Normally, all buyers perform a final walk-through 24 hours before closing. During the final walk-through, you will make sure the seller is out of the home, all furniture or appliances requested are on-site, and that no additional damage has been done to the home.
There are always some additional steps you can take in-between the aforementioned steps listed, such as booking movers or obtaining a home warranty. Your Delavan real estate attorney and real estate professional will assist you along the way with the many details involved in the closing process.
Your next step is attending the real estate closing. You should bring to closing: a photo ID, a copy of your home owner’s insurance, any other requested closing documents (such as inspections, survey, copy of contract), and cashier’s checks to pay your closing fees. Your real estate professional will walk you through the details. Once at closing, you will sign papers and receive the keys to your new home! Congratulations!
Choose Our Delavan Real Estate Attorney
Buying a home is a detailed process that takes time to complete. By law, only a Delavan real estate attorney can provide you with legal advice during the home closing process, not a real estate agent, loan officer, or closing agent. Sometimes, buyers are encouraged to use the seller’s attorney. This is not a good idea because the interests of the buyer and seller differ. Home buyers need an experienced real estate attorney in their corner who will look out for their interests. If you are in need of a Delavan real estate attorney, please contact Wynn at Law, LLC by phone at 262-725-0175 or by email via our website’s contact page. Wynn at Law, LLC has offices located in Lake Geneva, Salem, and Delavan, Wisconsin.
*The content and material on this web page is for informational purposes only and does not constitute legal advice.