What happens before closing?

A real estate closing is the process of recording a deed and transferring the title of the property from seller to buyer. It sounds simple, but it’s more complicated than transferring a piece of paper with the door keys.  Many tasks must occur to complete a home purchase.

Immediately after applying for a mortgage loan, the costs associated with closing on your home should be provided to you.  Your lender has three days from the time of the loan application to provide a Good Faith Estimate of your loan costs so there are no surprises. Within those three days you should also receive a copy of the booklet, "Buying Your Home," which outlines the settlement process. If these two things do not occur, talk to your lender.

Other events or tasks that must happen before the closing date include:

• The closing agent talks with the seller's lenders to get loan payoff amounts, receives instructions from your lender, prorates the property taxes, and prepares instructions for you and the seller.
• The title company researches the ownership of the property, known as the title search as described in a previous blog.
• The lender prepares the loan documents and sends them to the escrow company.
• The seller makes repairs or performs whatever you agreed needed to be done so the inspection contingencies can be removed, and calls the utility companies with a final billing date.
• You, the buyer, complete the loan application, buy a homeowner's insurance policy, and call the utilities to get service set up in your name as of the closing date.
• The real estate agents ensures the closing agent has the essentials and the buyer and seller are in the loop so everybody knows when to show up, what to bring, and what needs to be completed before then.
• When the closing agent has all the documents prepared, you will be told how much money you need to bring to settlement in a cashier's or certified check.
• If your contract calls for a final walkthrough of the house within 24 hours of closing, your agent should go with you and help mitigate anything that's not right. You may discover the air conditioner has quit or the gas stove won't light. Did the seller leave all the items specified in the contract? Problems at this point could delay closing or mean having the escrow agent hold back money due the seller until repairs are made.
• During the closing, there are many people involved in everything from making sure the seller really has the right to sell you the house to recording documents at the county office.

Call Conquest Real Estate Now for More Info: (248) 569-1486

Home for Sale: Detroit: 18009 Pinehurst - $49,500

18009 Pinehurst, Detroit MI 48221 home for sale.

3 Bedrooms - 1 Bathroom - Available for just $49,500

A great looking bungalow starter home on a nice block with other nice homes.

Below, you can see a video tour:

Contact Conquest Real Estate Group at (248) 569-1486 to inquire.

Home for Sale: Detroit: 19502 Whitcomb - $60,500

19502 Whitcomb, Detroit MI 48235 home for sale.

5 Bedrooms - 1 Bathroom - Available for just $60,500

A nice bungalow home on a nice block with other nice homes.

Below is a video tour of this great starter home:

Contact Conquest Real Estate Group at (248) 569-1486 to inquire.

Home for Sale: Detroit: 14314 Mansfield - $60,500

14314 Mansfield, Detroit MI 48227 home for sale.

4 Bedrooms - 2 Bathrooms - Available for just $60,500

A classic looking brick bungalow home on a nice block with other nice homes.

Below is a video tour of this charming bungalow:

Contact Conquest Real Estate Group at (248) 569-1486 to inquire.

What Is An Earnest Money Deposit?

An earnest money deposit, as it is applied towards real estate transactions, is the tendering of a sum of money to substantiate that an offer to purchase was made in good faith.  The amount is based upon the total purchase price and usually averages about two to three percent, but can be as high as five percent.

The earnest money deposit is almost always held in escrow by a realtor or an attorney. If the transaction fails, both parties have to agree on the disbursement of the funds before they are released.

If there is no agreement, litigation will have to follow. Normally if the negotiations stall in the early stages of the sale, and it is clear no closing will be held, the deposit will be returned to the purchaser. On the other hand, if there has been much work done by the seller, or if the buyer reneges on his agreement to buy, the deposit might be given to the seller. 

The purpose of an earnest money deposit is to show good faith on the part of the offeror. In the past unscrupulous prospective purchasers would  make several simultaneous offers on various parcels of property while intending to buy only the one where he obtained the best result.

The effect of this method was to constrain the losing sellers from negotiating with others who were truly interested in purchasing their property, but they were prevented from doing so because they signed an acceptance from the unscrupulous offer-or. Of course, in such an instance the seller could sue for specific performance of the contract, but that could involve expensive litigation which might take years to complete. 

The historical development of tendering an earnest money deposit to prove good faith on the part of the purchaser has resulted in an acceptable way to protect sellers and facilitate the completion of real estate transactions.

Call Conquest Real Estate to Learn More: (248) 569-1486

Need a house and can’t get a traditional mortgage?

If you are like 90% of America it is difficult to get a mortgage. And if you’re like me you are tired of paying rent and getting nowhere. The problem is saving up the 20% down for a down payment is just about impossible.

Over the last four years you have watched the price of everything in life increase but income keeps getting cut and at the end of the month there is no extra money to save. To make down payment on a house at twenty percent on the average house you would need about $10,000. So you’re stuck renting and never getting where you want to be.

However if you could just save 3.5% you might have a chance. That is because the FHA (Federal Housing Administration) is willing to help people like us. They offer a low down payment loans for first time home buyers to purchase a home and beat the vicious cycle of paying rent and being stuck somewhere you don’t like to be. 

The FHA home loan program is designed to help lower income Americans and those that can’t obtain a traditional mortgage because of their financial situation. Whereas with a traditional mortgage at a bank one must have 20% down and the home must pass a inspection for financing a FHA loan will allow you to finance the repairs to make a fixer-upper finance-able and you can roll the cost into the loan with a low down payment.

Unlike traditional banks the FHA Loans program will also allow someone to finance a mobile home or a modular home rather it is in a mobile home park or on property. The FHA Loans will also help finance energy upgrades to a old home. 

With this information a person who saves up $3500.00 and has the proper credit rating could purchase a $100,000 home.

Maybe there is hope.

Call Conquest Real Estate Now to Learn More: (248) 569-1486

Home for Sale: Detroit: 18066 Indiana - $59,500

18066 Indiana, Detroit MI 48221 home for sale.

3 Bedrooms - 1.5 Bathrooms - Available for just $59,500

1 1/2 Baths Upstairs + 1/2 Bath Main Level and another Nice, Full Bath in the Basement -

A spacious colonial home on a nice block with other nice homes.

Below is a video tour of this spacious colonial home:

Contact Conquest Real Estate Group at (248) 569-1486 to inquire.