The first steps to selling your home are the buyer and seller reach a contractual agreement and the buyer’s option check is delivered to the seller.
Selling agent delivers contract and buyer’s earnest money check to the title company, and the earnest money is cashed and deposited into a trust account with the title company.
If purchased by the buyer, the unrestricted right to terminate begins the day after the effective date of the contract.
Buyer orders any property inspections.
Title company opens a file, begins title search, issues title commitment binder to buyer’s lender, orders property tax information and obtains loan pay-off information from seller’s lender.
The buyer makes loan application (if a loan is involved); appraisal and credit report is ordered and buyer verifications are processed.
Coordinate expiration of buyer’s option period and any proposed repairs and amendments.
Buyer orders homeowner (hazard) insurance policy; insurance company commits to ensure appraisal of property completed; verify and lender requirements of property and any re-inspections.
Lender prepares the buyer’s loan package and submits for final underwriting approval.
Loan approval granted and lender’s closing department prepares documents and sends to the title company.
Verify and lender-required conditions to be met by the buyer; survey ordered by the title company.
Buyer’s and seller’s agents coordinate closing date and time with buyer, seller and title company.
Title company receives the lender’s closing instructions, prepares additional closing documents and the HUD-I closing statement.
The buyer does a final walk-through inspection of the property and obtains a cashier’s check for closing costs and balance of down payment.
Title company closes the sale, returns or faxes required documents to the buyer’s lender for approval. Most loan companies require this before disbursement of funds. Title company receives and funds all monies from the lender, including payment of all delinquent taxes, termite inspection, mechanical inspections, bank charges, attorney’s fees, professional real estate fees, title company fees and any other accrued expenses in connection with the closing. Title company records the legal documents in the office of the county clerk, and a recorded deed is mailed to the buyer by the county clerk. Title company prepares and issues title policy and sends to lender and buyer.
Possession is given to the buyer according to the terms of the contract.