|
What to expect during the escrow periodOur team is committed to guiding you through each stage of the process, so you can feel confident and informed throughout. While this page is designed to provide you with an overview of what to expect, we will be there every step of the way to answer any questions you may have.
When it comes to the initial stages of the process, you can expect to receive two emails from us regarding the home inspection and earnest money. Typically, the home inspection is scheduled within 1-2 days of the offer acceptance date, depending on the terms of the offer. |
Home Inspection
Buyers should schedule a home inspection promptly after the offer is accepted to identify potential issues. Attending the inspection is recommended, and the length varies. A termite inspection may be needed for some properties. Afterward, the inspector provides a report within 24-48 hours. The buyer can notify the seller of any issues and request a credit or repairs, and their intention to move forward should be communicated in writing.
Lender/Closing Attorney
We forward all contract documents to lender and closing attorney. They will reach out to you directly. Your agent, will also stay in communication with the lender and closing attorney to ensure a smooth closing process. They agent can help facilitate any necessary communication between you and the lender or attorney and address any questions or concerns that may arise.
Appraisal
The lender will typically contact the buyer to order the appraisal after the home inspection has been completed and any necessary repairs have been made. The appraiser will visit the property to take pictures, measure the square footage, and assess the condition of the home. The results of the appraisal can take anywhere from 1-2 weeks to come in.
If the appraisal comes back at or above the value of the purchase agreement, and no repairs are needed, then nothing further is required of the seller. However, if the appraisal comes in lower than the sales price, then negotiations may need to take place to determine a reasonable price that works for all parties involved. This may involve the buyer and seller renegotiating the price, or the buyer may need to come up with additional funds to cover the difference between the appraised value and the sales price.
Clear To Close
Clear to close is a crucial milestone in the home buying process that indicates the buyer is fully approved to close on the sale. However, it can take time to obtain, as lenders may be overwhelmed with transactions. It's not uncommon to receive clear to close just a day or two before the scheduled closing. Buyers should stay in communication with their lender and agent and remain patient during the process.
Utilities
It's important to remember that transferring utilities is a necessary step in the home buying process, but it doesn't need to be done right away.
Typically, it's recommended to transfer the utilities to the buyer's name about a week or so prior to the closing date, with the start date for the transfer being the day of closing. This can help ensure a smooth transition of services and prevent any lapses in service or billing.
It's also a good idea for buyers to confirm which utilities they will be responsible for and to set up automatic payments or billing as needed. The real estate agent or the seller may be able to provide information about the utility providers and any necessary contact information to facilitate the transfer process.
Walkthrough
The final walkthrough is a crucial step before closing on a property. It allows the buyer to inspect the property for any damages or changes that may have occurred since the initial inspection and to ensure that any repairs or agreed-upon work has been completed. Any issues or concerns that arise can be addressed with the help of the buyer's real estate agent before closing. Overall, the final walkthrough provides peace of mind to the buyer and ensures the property is in the expected condition.
Closing Day
To ensure a smooth and successful closing, it's important to follow certain requirements and procedures. This includes providing a copy of your identification and using a cashier's check payable to the title company if you need to write a check. Discussing these requirements with your closing attorney in advance can help avoid any potential delays or issues on the day of closing.
Buyer FAQs
Do I need to maintain integrity of my credit throughout escrow period?
Maintaining the integrity of your credit during the escrow period is crucial as your lender will check your credit score again before the closing. Any significant changes in your financial situation could delay or jeopardize the closing. To avoid issues, continue making payments on time and avoid taking on new debt or making significant changes to your financial situation. This helps ensure that your credit score and financial standing remain stable, securing the loan and closing on the property as planned.
Check out 10 Commandments of Buying a Home
Do I need to attend closing?
It's recommended to attend the closing if possible, but exceptions may apply depending on your circumstances and lender's requirements. If you can't attend, remote signing or designating someone else to act on your behalf may be options. Discuss these with your closing attorney beforehand. Attending in person can help ensure a smooth process and address any concerns, and also provide a chance to meet other parties involved.
Does Buyer need to attend home inspection?
While not strictly necessary, it's recommended that buyers attend the home inspection if possible. Attending can give valuable insights into the property's condition, potential issues, and maintenance needs. It can help make informed decisions about the purchase, negotiate repairs, or plan for upgrades. Ultimately, attending can lead to a smoother homebuying experience.
Will My Agent be at home inspection?
Whether or not your agent attends the home inspection is ultimately up to you as the buyer. Professional inspectors are licensed and insured in Georgia, and work for the buyer, providing a detailed report with photos and descriptions of any issues. The report can help buyers make informed decisions and negotiate repairs or credits with the seller.
Can we ask Seller to repair/replace something or, ask for monetary concession in lieu of repairs once we are under contract?
As a buyer, you can request repairs or replacements from the seller during the due diligence period, which starts after the seller accepts your offer and ends before the contract termination deadline. You can also ask for a monetary concession instead of repairs. Remember, any requests made during this period must be agreed upon by both parties in writing to be part of the final contract.
Will Seller continue to show home after they accept our offer?
After accepting your offer, the seller may still show the home to potential buyers, but the listing should be marked as "Pending" in the MLS. While some sellers may seek backup offers, most won't once the property is under contract. Some may even take the home off the market to avoid confusion. Ultimately, the decision to continue showing the home depends on the seller's circumstances and their listing agent's advice.
Is the closing date set in stone? Are we guaranteed to close by contract closing date?
It's important to keep in mind that the closing date is an estimated date, and it's not guaranteed. There are several factors that can affect the closing date, including delays in the underwriting process, issues with the appraisal, and problems with the title. Buyers and sellers should be prepared for the possibility that the closing date may need to be pushed back if there are any issues that arise during the transaction. It's important to communicate regularly with your agent and lender to ensure that everyone is on the same page and working towards a successful closing.
When will we know if we are closing on time?
Generally, lenders won't issue a "clear to close" until all the conditions of the loan have been met, including the appraisal, verification of employment and income, and review of all documentation. This process can take time, and the lender will prioritize files based on their closing dates. So, you may not know for sure if you're closing on time until you receive the clear to close from the lender, which can come as little as 24 to 72 hours before closing.
What happens if we can’t close on time?
If the closing date needs to be changed due to unforeseen circumstances, an amendment can be made to the purchase agreement to reflect the new date. However, all parties involved in the transaction, including the buyer, seller, and their respective agents, must agree to the new date. It's important to communicate any potential delays as early as possible to minimize any inconvenience to all parties involved.
BUYERS CHECKLIST FOR CLOSING
*** PLEASE BE ADVISED THAT I WILL NOT SHARE ANY SETTLEMENT AGENT WIRING INSTRUCTIONS VIA EMAIL. NO EMPLOYEE, OFFICER OR AFFILIATE OF ATLANTA COMMUNITIES WILL EVER INITIATE A TELEPHONE CALL TO YOU TO OFFER WIRING INSTRUCTIONS. COMMON WIRE FRAUD SCHEMES AND THEFT OF WIRED FUNDS INVOLVE USE OF SIMILAR EMAIL ADDRESSES AND HACKED ACCOUNTS. IF YOU RECEIVE AN EMAIL OF WIRING INSTRUCTIONS FROM "ME" OR ANY "ATLANTA COMMUNITIES" EMPLOYEE OR EMAIL ADDRESS, DO NOT INITIATE A FUNDS TRANSFER AND CONTACT ME PERSONALLY IMMEDIATELY FOR VERIFICATION. Neither I, nor Atlanta Communities, is responsible for any wires sent by you to an incorrect bank account. ALWAYS confirm the proper wire instructions by calling the Settlement Agent's office using a phone number you find from an independent source, such as the internet, NOT the phone number at the bottom of an email that contains any wire instructions. ***
Buyers should schedule a home inspection promptly after the offer is accepted to identify potential issues. Attending the inspection is recommended, and the length varies. A termite inspection may be needed for some properties. Afterward, the inspector provides a report within 24-48 hours. The buyer can notify the seller of any issues and request a credit or repairs, and their intention to move forward should be communicated in writing.
Lender/Closing Attorney
We forward all contract documents to lender and closing attorney. They will reach out to you directly. Your agent, will also stay in communication with the lender and closing attorney to ensure a smooth closing process. They agent can help facilitate any necessary communication between you and the lender or attorney and address any questions or concerns that may arise.
Appraisal
The lender will typically contact the buyer to order the appraisal after the home inspection has been completed and any necessary repairs have been made. The appraiser will visit the property to take pictures, measure the square footage, and assess the condition of the home. The results of the appraisal can take anywhere from 1-2 weeks to come in.
If the appraisal comes back at or above the value of the purchase agreement, and no repairs are needed, then nothing further is required of the seller. However, if the appraisal comes in lower than the sales price, then negotiations may need to take place to determine a reasonable price that works for all parties involved. This may involve the buyer and seller renegotiating the price, or the buyer may need to come up with additional funds to cover the difference between the appraised value and the sales price.
Clear To Close
Clear to close is a crucial milestone in the home buying process that indicates the buyer is fully approved to close on the sale. However, it can take time to obtain, as lenders may be overwhelmed with transactions. It's not uncommon to receive clear to close just a day or two before the scheduled closing. Buyers should stay in communication with their lender and agent and remain patient during the process.
Utilities
It's important to remember that transferring utilities is a necessary step in the home buying process, but it doesn't need to be done right away.
Typically, it's recommended to transfer the utilities to the buyer's name about a week or so prior to the closing date, with the start date for the transfer being the day of closing. This can help ensure a smooth transition of services and prevent any lapses in service or billing.
It's also a good idea for buyers to confirm which utilities they will be responsible for and to set up automatic payments or billing as needed. The real estate agent or the seller may be able to provide information about the utility providers and any necessary contact information to facilitate the transfer process.
Walkthrough
The final walkthrough is a crucial step before closing on a property. It allows the buyer to inspect the property for any damages or changes that may have occurred since the initial inspection and to ensure that any repairs or agreed-upon work has been completed. Any issues or concerns that arise can be addressed with the help of the buyer's real estate agent before closing. Overall, the final walkthrough provides peace of mind to the buyer and ensures the property is in the expected condition.
Closing Day
To ensure a smooth and successful closing, it's important to follow certain requirements and procedures. This includes providing a copy of your identification and using a cashier's check payable to the title company if you need to write a check. Discussing these requirements with your closing attorney in advance can help avoid any potential delays or issues on the day of closing.
Buyer FAQs
Do I need to maintain integrity of my credit throughout escrow period?
Maintaining the integrity of your credit during the escrow period is crucial as your lender will check your credit score again before the closing. Any significant changes in your financial situation could delay or jeopardize the closing. To avoid issues, continue making payments on time and avoid taking on new debt or making significant changes to your financial situation. This helps ensure that your credit score and financial standing remain stable, securing the loan and closing on the property as planned.
Check out 10 Commandments of Buying a Home
Do I need to attend closing?
It's recommended to attend the closing if possible, but exceptions may apply depending on your circumstances and lender's requirements. If you can't attend, remote signing or designating someone else to act on your behalf may be options. Discuss these with your closing attorney beforehand. Attending in person can help ensure a smooth process and address any concerns, and also provide a chance to meet other parties involved.
Does Buyer need to attend home inspection?
While not strictly necessary, it's recommended that buyers attend the home inspection if possible. Attending can give valuable insights into the property's condition, potential issues, and maintenance needs. It can help make informed decisions about the purchase, negotiate repairs, or plan for upgrades. Ultimately, attending can lead to a smoother homebuying experience.
Will My Agent be at home inspection?
Whether or not your agent attends the home inspection is ultimately up to you as the buyer. Professional inspectors are licensed and insured in Georgia, and work for the buyer, providing a detailed report with photos and descriptions of any issues. The report can help buyers make informed decisions and negotiate repairs or credits with the seller.
Can we ask Seller to repair/replace something or, ask for monetary concession in lieu of repairs once we are under contract?
As a buyer, you can request repairs or replacements from the seller during the due diligence period, which starts after the seller accepts your offer and ends before the contract termination deadline. You can also ask for a monetary concession instead of repairs. Remember, any requests made during this period must be agreed upon by both parties in writing to be part of the final contract.
Will Seller continue to show home after they accept our offer?
After accepting your offer, the seller may still show the home to potential buyers, but the listing should be marked as "Pending" in the MLS. While some sellers may seek backup offers, most won't once the property is under contract. Some may even take the home off the market to avoid confusion. Ultimately, the decision to continue showing the home depends on the seller's circumstances and their listing agent's advice.
Is the closing date set in stone? Are we guaranteed to close by contract closing date?
It's important to keep in mind that the closing date is an estimated date, and it's not guaranteed. There are several factors that can affect the closing date, including delays in the underwriting process, issues with the appraisal, and problems with the title. Buyers and sellers should be prepared for the possibility that the closing date may need to be pushed back if there are any issues that arise during the transaction. It's important to communicate regularly with your agent and lender to ensure that everyone is on the same page and working towards a successful closing.
When will we know if we are closing on time?
Generally, lenders won't issue a "clear to close" until all the conditions of the loan have been met, including the appraisal, verification of employment and income, and review of all documentation. This process can take time, and the lender will prioritize files based on their closing dates. So, you may not know for sure if you're closing on time until you receive the clear to close from the lender, which can come as little as 24 to 72 hours before closing.
What happens if we can’t close on time?
If the closing date needs to be changed due to unforeseen circumstances, an amendment can be made to the purchase agreement to reflect the new date. However, all parties involved in the transaction, including the buyer, seller, and their respective agents, must agree to the new date. It's important to communicate any potential delays as early as possible to minimize any inconvenience to all parties involved.
BUYERS CHECKLIST FOR CLOSING
- Government Issued Photo ID – Driver's license or Passport is acceptable. If neither available, get attorney approval
- If a Power of Attorney is executing closing documents on your behalf, the original must be brought to closing, as it must be recorded. The executed Power of Attorney form must be approved prior to closing by Attorney and Lender
- Closing conditions required by Lender, such as original tax returns, closing statement from sale of previous home, pay stubs or gift letters
- Pursuant to O.C.G.A Section 44-14-13, Georgia law requires all funds for closing over $5,000.00 MUST be in the form of a bank wire, NO EXCEPTIONS (including any gift funds or funds from any other source that may be used by the borrower including closing proceeds from another law firm); funds under $5,000.00 may be a cashier’s check or wire.
*** PLEASE BE ADVISED THAT I WILL NOT SHARE ANY SETTLEMENT AGENT WIRING INSTRUCTIONS VIA EMAIL. NO EMPLOYEE, OFFICER OR AFFILIATE OF ATLANTA COMMUNITIES WILL EVER INITIATE A TELEPHONE CALL TO YOU TO OFFER WIRING INSTRUCTIONS. COMMON WIRE FRAUD SCHEMES AND THEFT OF WIRED FUNDS INVOLVE USE OF SIMILAR EMAIL ADDRESSES AND HACKED ACCOUNTS. IF YOU RECEIVE AN EMAIL OF WIRING INSTRUCTIONS FROM "ME" OR ANY "ATLANTA COMMUNITIES" EMPLOYEE OR EMAIL ADDRESS, DO NOT INITIATE A FUNDS TRANSFER AND CONTACT ME PERSONALLY IMMEDIATELY FOR VERIFICATION. Neither I, nor Atlanta Communities, is responsible for any wires sent by you to an incorrect bank account. ALWAYS confirm the proper wire instructions by calling the Settlement Agent's office using a phone number you find from an independent source, such as the internet, NOT the phone number at the bottom of an email that contains any wire instructions. ***
