A Weekly Overview of Closing a House: A Homebuyer's Timeline
Many homebuyers don't know that closing on the house can take a lot of time, and you can't just move in right away. You may get a bit frustrated, especially when you don't know the process. But you should know that this time is necessary to avoid any miscommunications and mishaps with the seller and so that you have enough time to finalize your mortgage.
Thankfully, there are experienced mortgage brokers in Oahu who can assist you in this whole process. Understandably, dealing with finances and the pressures of closing the deal can be a handful to most. Working with the right mortgage broker can help lift off some of the weight from your shoulders.
If you're currently closing a house, it might help to know what goes on in a home buyer's timeline to put your mind at ease during this process. If you're curious, stick around because here's a weekly overview of what goes on when you're closing a house.
Week 1: Escrow account, title, and home inspection
After a few moments of celebration, once your offer has been accepted, the first thing you need to do is to open an escrow account and schedule a home inspection immediately.
The purpose of an escrow account is to serve as a financial account where a third party protects all the money and important legal documents. By doing this, you can ensure that your down payment will be kept safe alongside other documents before you finish closing.
After creating an escrow account, hire qualified inspectors to assess your new home and to get accurate information about the place. This way, you'll be able to spot issues and repairs.
Lastly, you must investigate the title. Usually, a title company can manage this for a fee and ensure that they'll take the necessary steps to make sure no one else has any legal claim to the home.
Weeks 2-3: Finalize purchase agreement and handle mortgage appraisal
After doing the week one tasks, it's time for you to negotiate the final purchase agreement. At this point, it'll be a good idea to work with a buyer's agent who has strong negotiating skills to properly communicate the fixes that need to be done or concessions made for issues that the inspector has found.
Once that's done, you'll be working with a mortgage company again. Out of all the weeks in closing a house, this is the longest part of the process because it will involve a lot of waiting.
During this process, the mortgage company will order an appraisal on the home, and the lender will then approve a mortgage for the appraisal. If the appraisal is below the sales price, you might need to negotiate; however, if you still want the home, you'll need to ask for a lower price or pay the difference yourself.
This is why it's imperative to work with the right mortgage broker so that you won't experience any issues during this taxing period.
Week 4-6: Final mortgage approval and finally closing the house
Now that the appraisal is through, the mortgage company will do some paperwork for you to get the final approval. However, you can't move in just yet once approved because you'll need to wait for the go signal from the seller should they agree to close earlier.
Once you've done the final walkthrough and the seller has agreed to close, it's time to meet with your realtor, seller, and agent to sign all final paperwork and provide your down payment.
Homebuying in Oahu with HI Velocity Mortgage
Closing a home can take a lot of time, and if you aren't aware of the steps involved in the process and if you're not sure what to expect, the waiting period can be a bit frustrating. For a smooth closing process, it's best to work with a reliable mortgage broker so that they can help you understand the terms and conditions and guide you through the whole home buying process.
Are you currently looking for mortgage brokers in Oahu? At HI Velocity Mortgage, we can help you through the whole home buying and home lending process. All you need to do is call (808) 727-1055 to get started!