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Paperwork
Processing The
Case, Etc., Etc.
The listing or selling broker (depending on local custom)
oversees a contract through to closing and helps to place
the financing, process the case, arrange various inspections
and review financing and “points”.
At this stage, all contingencies will be satisfied and
removed. The buyer will select a settlement and/or a title
company, and the listing or selling broker will notify those
firms and provide the vital information.
A number of professionals come into the home selling process
during this period, including a home inspector (if requested
by the buyer), well and septic inspectors, termite inspector,
appraiser and attorneys. A mortgage approval can be made
at application in many cases subject to verification of
the information provided. However, on the chance that the
financing falls through, the seller should keep the property
in showable condition.
Here are some other things to keep in mind at this point:
Termite
Inspection
This inspection is required by most lenders and is specified
in the contract, although it’s not usually required
for hi-rise condominiums. The termite inspections is ordered
by the selling or listing broker according to local custom.
If existing coverage is in effect that might avoid an unnecessary
inspection, the home seller should mention this to the listing
broker. The seller is responsible for payment of the inspection,
removal of any infestation if required, and the repair of
damage if needed.
 Loan
Processing
Your listing broker will keep you informed about the buyer’s
loan approval progress. Most contracts require the buyer
to make a loan application immediately after contract ratification.
The lender’s loan officer takes the buyer’s application.
A property appraisal is ordered to confirm that the property
is adequate security for the mortgage (the home seller should
expect the appraiser to call for the inspection appointment).The
lender verifies the buyer’s employment, income, deposits,
credit rating and debts.
Upon receipt of any information requested and the appraisal,
the lender issues final approval of the mortgage application.
VA, FHA, and occasionally a conventional lender may specify
requirements which must be met before the loan will be made,
such as repairs. Ask your Long & Foster Sales Associate
about this situation. When the loan is approved, a commitment
is issued to the buyer. Many contracts require loan commitment
from the lender within a specified period of time.
After
Loan Approval
After the buyer receives written loan approval, the selling
and listing brokers will coordinate a settlement date. Your
listing broker will notify you to confirm the date, place,
and time and will give you a checklist of everything you
need to bring to settlement. Your listing broker will also
let you know when you should notify utility companies to
transfer accounts.
The home seller can now make definite moving plans. If the
move is to another city outside of Long & Foster’s
seven-state, Mid-Atlantic region, Long & Foster can
arrange for you to receive destination area information
from our affiliated broker. This out-going referral ensures
the seller of working with a broker of the same quality
as Long & Foster, and makes the move easier by providing
information prior to house-hunting trips.
Anticipating
the Move
A number of items a seller might consider, now that settlement
is set, include:
- Begin to use food in your freezer.
- Eliminate items you won't be moving. (You may want to
have a garage sale.)
- Check with your insurance agency if you want to purchase
full coverage on moveables. Make sure your family car
and household goods are adequately protected while enroute
and initially after arrival. (If the seller plans to vacate
the house more than 30 days before settlement, be sure
hazard insurance covers risk during that period and until
the deed is recorded.)
- Obtain transcripts of children's school records.
- Have birth and baptismal records made of all family
members.
- Secure medical, dental, and optometry records for the
family.
The selling broker will remind the buyer to arrange for
insurance coverage in at least the amount of the mortgage
as of closing, and to bring a certified or cashier’s
check made out to the settlement attorney or title company.
Unless otherwise provided in the contract, the buyer gets
possession at settlement. The seller should make plans to
clean, remove trash, and vacate the day prior to settlement,
or in any case, not later than settlement day. All appliances
should be in good working order in time for the buyer’s
final walk-through inspection.
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