How Long Does It Take To Close On A Home with Local Los Angeles Luxury Realtor Corrie Sommers

Hi everyone, Corrie Sommers here today. We are going to be talking about how long does it take to close on home. Stay tuned for all of the details and the steps that are involved with closing on home. Okay so you’re buying a home maybe it’s been a while or maybe this is your first home purchase and you’re wondering exactly how long does it take to closing a home. Well there’s a quick answer but before we get into that I want to walk you through the steps involved with closing on a home. The first thing is once your offer has been accepted escrow will be opened. Now there are some states that use attorneys but we’re gonna just focus on escrow. So escrow is a third party and escrow will reach out to you with wire instructions for you to send over your earnest money deposit. I always encourage all of my clients to give escrow a call when you get that email. You want to just verify the information. You know there’s hackers out there today you just want to make sure you’re being extra cautious. So the next step on our journey to closing after you have an accepted offer is your home inspection. You have an inspection contingency period and you are going to want to have your home inspected. Now there’s a general home inspection which we’ll take a look at all of the systems. Your electrical, your wiring, make sure your plumbing is working. Check out your heating and your A/C. You want to make sure that the home is healthy, that it’s safe this is not the time to say oh you know the the water heater is five years old the seller should pay or replace it or give me a new one. You’re really only going to negotiate items that are actually needing repairs or not functioning properly or not safe. And this is where both your agent will guide you as well as a home inspector. Definitely ask the inspector questions. You will get a detailed report and I really recommend that you go through that with your agent. We’ve been doing this for quite a while we’ve seen numbers, and numbers and numbers of home inspection reports and we’re actually able to guide you on what some of the the more bigger concerns are. And what some of the things are that we need to negotiate. Once we’ve got that home inspection you may want to negotiate and that’s where your agent will step in. I work to either get things repaired or perhaps a credit. Something else I want to address if you are purchasing a home that’s perhaps in the Hills you might want a structural engineer. And if you’re here in Southern California you probably want to get a pest inspection. Termites are very common here, we’re in a very dry climate and they come and go. So you might want to check that out as well. Now here’s a really important and big piece. Once you have an accepted offer you want to reach out to your lender immediately. You want to get them a copy of your accepted offer. This is the time for your official mortgage application because until now you’ve probably just been pre-approved or pre-qualified. Definitely pre-approvals are better but we’re gonna do a video on that topic. So this is the time that you’re really going to dive in and start crunching and moving at a fast pace. Be prepared you will be submitting paperwork over and over again. There is a number of people that have their hands in the process from underwriting to the processor to your loan officer who is really your point of contact. Don’t get frustrated I always recommend to my clients save everything on a thumbnail or like a Dropbox. Something that’s easy and accessible to get to, because you will get that call when you’re driving or at lunch or at work and they’re gonna tell you that they need it right away. So you always want to be prepared. So another step that has to take place before you can close is the appraisal. Now the appraisal is ordered by your lender. For the most part agents are not in touch with the appraisers. They want to keep a little bit of separation there. They are basically going to determine that the home is at the value that the bank is going to be lending to you. Now we’ve been in a very strong seller’s market for years and so there was a time that things might have been overpriced and people were coming in with high amounts of cash so if your appraisal does not come in at the price that you have offered on the home there are options. Maybe you can negotiate and both the seller and you can come to an agreement. Maybe they’ll agree to sell it the price that it has appraised for or they might expect you to cover that difference. And perhaps you’re coming in with a 20% loan but your lender can do a 90% loan great. Maybe you don’t want that because the PMI. Maybe you’re coming in with 30% down or 40% down and you really want this house and you like the house and the difference is only thirty thousand or something like that and they can restructure the loan. That’s an option or you have the option to completely walk away from the house at that point. But we are talking about the steps to get you to close. And the appraisal is one of those steps. Another part of the process for you to be able to close has everything to do with your title and your homeowners insurance. So title is typically ordered by the title company. If you’re dealing with an escrow state and they want to make sure it’s a clean title so; they’re going to review it and they will insure it. If you are to say that’s an attorney state they will basically do the same thing. Now homeowners insurance; this is something I like to tell my clients in the beginning to start looking into. Because at some point in the mortgage process your loan officer will say hey you need to get homeowners insurance or the processor will reach out and say we need a copy of your homeowners insurance. And you might be like wait, what? So I want you to be fully prepared. I generally give my clients a couple of people to look into that do cover homeowners insurance. You can also in addition to kind of googling and looking online reach out to the insurance company you have your car insurance with. Because a lot insurance companies will bundle things together and give you a discount if you have more than one policy with them. So that’s a great recommendation right there. Okay so the next step in the process is our closing Doc’s. Escrow is going to get in touch with you to let you know closing Doc’s are ready. You are going to receive a closing disclosure from the lender. It’s commonly referred to the CD. This is going to have your loan terms your interest rate your payments all of that information. You usually have to sign off on that. Now we’re almost at the end. When we’re here at this stage we’re gonna do a walk-through. Typically the walkthroughs are scheduled once we know our CD is out and we’ve gotten that closing date from escrow. You’re gonna go back in and just take a look at the home make sure that thing hasn’t changed. Things are there that should be there and if there was something negotiated like say if there was something to go or that needed to be fixed or replaced, that that was actually done and that there’s no damage to the house. So once that has taken place the day comes for you to go down to escrow and sign your loan docs. YAY!!!! So on this particular day you’re gonna go through, escrow will walk you through. Everything’s gonna be notarized and you’re gonna sign your loan docs. It’s not quite the end, it’s almost the end. What has to happen after that is the loan has to actually fund. So let’s say you know you’re working and you’re getting your loan docs signed at Wednesday at 6 o’clock or maybe earlier than that Wednesday at 3 there’s not necessarily gonna be enough time for your loan to fund that day. So your loan would fund the following day. Well once the loan is actually funded then you have to go on record. So that’s when it’ll get recorded and once the recording is done you will get your keys. So typically you want to think a day to up to two to after your loan signing but Doc’s will you finally close. Now all that said we’re gonna take this back to the beginning. HOW LONG does it take to close on a house? So in fact the reality is this entire process could take seven days, this entire process could take 15 days it could take 21 days it could take 30 days. All of that depends on how quickly your lender is able to do this. So I hope this information is very helpful and I’ve actually created a guide for you that goes over these steps. Just go ahead and follow the link below subscribe and you will get a copy. I really want to thank you for watching and if you have any thoughts or further questions go ahead and comment below and if you like this video give it a thumbs up. Last but not least if you haven’t subscribed to my channel yet please do so and ring the bell. Until next time have a great day! 🙂

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