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10
Steps To Buying a House on the Cape | |||||||||||||||||
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| Mortgage Forum If you want to save money for your retired life, then the 401(k) Retirement Plan is the best option as the major attraction of these plans is that the contributions are taken from pre-tax salary and the funds grow tax-free until withdrawn. In addition to it you are always welcome to visit the mortgage forum and discuss your problems & queries with the experts. |
An offer is a legally binding statement of your interest in buying a property. It spells out the money you are willing to pay and the time frame for the purchase that is best for you. You will make your offer conditional upon satisfactory inspections of the structural and mechanical systems. These inspections should occur within a week or two of making the offer. In addition, the offer will have a financing contingency covering the need for the bank to okay several things about the house. Legally, your offer must be in writing and with a binder of money. Typically, the binder is $1,000 and is credited toward the sale price.
It may be a matter or hours or days for the negotiations to come to a conclusion. This is one of the most emotional phases of the process. Sometimes the negotiations linger into the home inspection phase, too.
Your offer has been accepted! This is like being officially engaged. You now have a legal interest in the property. The inspections must be set up immediately and the bank notified that you have found a property. The bank appraiser's inspection visit will be scheduled by the bank through the listing agent. If the septic report, soil percolation test and water quality tests weren't completed prior to the listing of the property, now they must be put on the fast track by the listing agent. The bank will assign, perhaps with your consultation, an attorney to handle the title search and mortgage paperwork. It is a conflict for the buyer and seller to have the same legal representative, so everyone will first want to know who the seller's legal representative is.
Since May, 2001, the Commonwealth of Massachusetts has required home inspectors to be licensed and Realtors to give out information about how to find one. In addition, the law states that only buyer's agents may recommend a home inspector to you. In contrast, seller's agents and subagents by law may only give out the general list of inspectors. This is another example of how you are better off using a buyer's agent. Full details are at Board Of Registration of Home Inspectors.
Generally at this point the inspections have been completed, and it is only the bank's full commitment that is outstanding. This is the step where you put down your ten per cent deposit, which goes into an escrow account at the real estate agency that listed the property. A personal check is okay. You sign the agreement first and then the Seller signs. It isn't the custom on the Cape for this to happen at a formal meeting, but rather it happens in two stages and sometimes by mail since one or both parties to the agreement may live off-Cape.
Contact the utility companies to arrange for their services to be put into your name the day of the closing. The seller will be contacting them to request final readings and to okay the transfer to you on that date. These arrangements can be made 10 days or so prior to the closing if that date is known for sure. If the house has oil heat, the oil tank needs to be topped off just prior to the closing. The buyer will pay the seller for a full tank of oil, and the oil company will certify the exact amount and price of oil in the tank.
On the day of the closing you will check out the house to make sure there are no surprises. Generally, the house is to be empty and "broom clean." One hopes there is no trash or junk left behind. Any work that was to be done must be completed. This is a time of heightened excitement, anticipation, and sometimes exhaustion.
This is a meeting at the Barnstable County Registry of Deeds or at the office of the buyer's lawyer. The buyer puts down the rest of the purchase money at the closing. The closing attorney provides you with a detailed list of instructions. Sometimes the seller doesn't come, but sends a representative. The listing agent will have a certificate from the fire department confirming that the house has working smoke detectors in the appropriate places and that the house numbers on the house are correct and visible from the street for emergency vehicles. In some towns there is also a special letter from the Board of Health certifying that the septic system is in compliance with the town's regulations for real estate transfer purposes. In other towns, the engineer's report is sufficient. The buyer puts down the rest of the money and signs the mortgage documents. The bank will want to have proof of homeowner's insurance from your agent. The Seller presents a new deed conveying the house to you. Your attorney or the bank attorney will put this new deed on record with the Registrar, confirming that you are now the new owner! You may now bring in your furniture - the place is yours! You'll get all the keys, but you may want to change or rekey the locks.