- Buyer and Seller complete a purchase agreement / sales contract. One can be provided if needed.
- Buyer has the option for home inspection, appraisal and abstract (title search) to verify there are no liens, wills, mortgages, or other documents affecting title to the property. This is when verification of the legal owner is made, and all the debts owed against the property are determined. Buyer typically pays for inspections and appraisals and should note if they waive this option.
- Insurance needs are established, buyer should price out for new policies and obtain quotes based on sellers’ requirements.
- Law office or title company should be given all quotes to add to the settlement statement, this includes the servicing companies’ fees, as they should be included with settlement costs. Property insurance and pro-rated taxes are added to the settlement statement or paid before signing.
- Escrow/settlement officer oversees closing of transaction. Seller signs deed then buyer signs new mortgage. Seller, real estate professionals, attorneys and other parties to the transaction are paid. Documents are recorded in the county/parish in which the property is located.
- All sales documents are forwarded over to the loan servicing company, this should include copies or original promissory note, mortgage, terms of loan, copies of insurance documents and tax information. Signed servicing agreement and contact information must be included.
