This is Part II of a two-part post
When your offer to purchase has been accepted by the seller, you will then go “into escrow”, during which time the following steps will be completed:
- You may elect to have a home inspection completed. In the Boise Area, the cost of this inspection is usually paid by the buyer. After the inspection is done, you will be given a copy of the home inspection report. At that point, if there are items needing repairs, you can ask the seller to make the needed repairs. The seller has the option of making the repairs or refusing to do so. If the seller refuses to make the repairs, you then have the option of not proceeding with the transaction.
Note: There is specific language in the Idaho RE-21 purchase and sale agreement that most Realtors® use that explains these provisions in full detail.
- If you will be obtaining financing for your purchase, your lender will require that an appraisal be completed by a licensed real estate appraiser. The appraiser will be selected by the lender to avoid any third party influence. It’s customary in the Boise Area that the cost of the appraisal is paid by the seller, and the cost is usually around $400 to $450 for an owner-occupied property. Appraisals for non-owner occupied properties cost more due to additional economic analysis required by the lender.
- The title company will perform a title search to determine the legal status of the property and verify any existing liens, encumbrances, easements, etc. for the property. When they have completed their search, they will prepare a preliminary title report or “title commitment” and deliver it to the lender and the Realtors® involved in the transaction. You should receive a copy of this document and review it carefully prior to closing.
- The title company will obtain payoff amount(s) for any existing loan(s) on the property, in order that the title company can pay those loan(s) off and insure clear title for you at closing.
- Your lender will prepare your loan documents and deliver them to the title company.
- The title company will incorporate the loan documents into its final escrow instructions for both you and seller, which will then need to be signed by both parties in order to prepare for the actual closing of the transaction.
- The sellers will sign their final closing papers.
- You will sign your final closing papers and submit cashier’s funds necessary to close to the title company.
- When both buyers and sellers have signed their respective closing papers, and all of your funds have been submitted to the title company, the title company will order your new loan funds from the lender. These funds are usually wired from the lender to the title company, a process which usually takes a few hours.
- Upon receipt of the new loan funds from the lender, the title company will deliver the Warranty Deed to the county recorder’s office and “record” the deed. This is the final act of “closing”, at which time title to the property transfers to the buyers.
- You will get your keys, garage door controllers, and garage keypad when escrow has closed.
Simple, isn’t it?