Buying a Home: the Finishing Details

As the days dwindle down towards closing

1. Appraisal

The mortgage lender will arrange for a real estate appraiser to assess the home’s value. If the appraised value falls below the agreed sale price, the lender may refuse to fund the mortgage loan.

2. Property Inspections

Schedule property inspections to ensure the home is in good condition. Early inspections allow the seller time to address any issues.

3. Seller’s Repairs

After inspections, the seller may need to complete repairs. These should be confirmed before closing.

4. Final Mortgage Loan Approval

The lender will review all conditions and, upon satisfaction, give the final approval for the mortgage loan.

Essential Buyer Responsibilities

1. Coordinate with Mortgage Lender or Broker

• Ensure Mortgage Check Delivery: Confirm with your lender or broker that the mortgage loan check and documents will be delivered to the closing attorney, escrow agent, or title company officer before the closing day.

2. Complete Necessary Inspections

• Key Inspections:
  • Termite inspection
  • Roof inspection
  • General inspection of appliances, HVAC systems, electrical, plumbing, sprinklers, etc.
• Schedule Early: Start inspections promptly so that any required repairs can be completed before closing.

3. Verify Repairs

• Quality Check: Inspect the repairs made by the seller to ensure they meet acceptable standards.
• Incomplete Repairs: If repairs are not completed, negotiate a credit on the settlement statement as compensation.

4. Obtain Warranties and Manuals

Request that the seller gather warranties and instruction manuals for the home’s appliances and systems. These should be provided at or before the closing.

5. Set Up Utilities

Contact utility providers (electricity, telephone, water, trash, etc.) to arrange service start dates in line with your move-in schedule.

6. Review the Settlement Statement

• Obtain a Copy Early: Before the closing, review the settlement statement with your real estate agent.
• Key Sections to Review: Pay close attention to amounts listed as “Paid from Borrower’s Funds.” Since the buyer borrows the mortgage loan, they are referred to as the “Borrower” in this document.