This article is specifically written for buyers in California where we use escrow companies, as opposed to attorneys, to complete the transaction. But lots of this information may still apply, and it’s worthwhile to consider the overall concept – thinking ahead about your CLOSING COSTS.
Folks who have bought before will have some idea of this already, but first time buyers are often surprised at the fees they have to pay, on top of the mortgage, during their purchase. A savvy agent can, and should, share information with you about the fees you can expect, some of which depend on the price of the home.
If you aren’t being told, or the topic has not yet come up, ASK. You don’t want any big surprises.
The other thing to keep in mind is that in the case of SHORT SALES and REOs (foreclosures) the fees may be higher because the bank will not approve paying some of the normal seller-paid fees.
READ MORE: Some Home Buying Costs You ay Not Think About (Part 2 of 3) – Escrow and Closing Costs
Visit my Real Estate Consumer Blog at Carlsbad Real Estate News for lots of information about the general area
All content copyright © 2010 Jeff Dowler “The California Relocation Dude”
Recording the deed to your new home is a final stage in the process of closing. Often you cannot gain access until escrow has closed and recording has occurred.
Recent changes in how recording occurs and when will have a significant impact for new home buyers. It will no longer be possible for a loan to be funded AND to record on the same day (with two exceptions).
The most exciting thing about buying your new home is having closing, obtaining the keys, and walking through the front door. So when does this happen?
Keep in mind that closing occurs in different ways in different states. In some locales you may sit down with your agent and an attorney, or some other professional, to sign paperwork and then receive your keys right there.
Here in California you normally receive the keys once the escrow company has received all the paperwork, your loan has been funded (i.e., the money is in escrow’s account), and the recording of the deed and other documents has occurred). You might meet your agent at the house, or be able to pick up the keys somewhere else once closing has occurred and you receive a call to that effect. Check with your agent as closing gets close so you know what to expect.
Sometimes folks want to get the keys early so they can start moving in, especially if they have movers bringing things. You will have to obtain permission from the sellers in order to do this, and often they are unwilling to do so becuase of liability issues. But there are exceptions
When making your offer, make sure you specify in the offer when possession is to take place. It could be, say, 5 PM on the date of closing. But sometimes sellers want it to be later so they can move out. You will have to come to an agreement on this.
WARNING!I recommend that you do not make specific plans with movers, arranging for vendors to do work, etc. on the day or closing, adn perhaps not even the day after, unless they can be changed. Sometimes things get delayed, through no fault of your own. If you do get possession when expected you could be in a bind.
If I can provide more information about Carlsbad and surrounding areas, or the housing market in general, or otherwise assist you in your homes search, please contact me by phone or text at (760) 840-1360 or email me at JDowler@remax.net.
All content copyright © 2007 Jeff Dowler Carlsbad Homes and Real Estate Tidbits