From Contract To Closing:
A Buyers’ Guide

Your offer is accepted—congratulations!

I’ll schedule the inspection within a week of the acceptance of your offer (now a contract). You and I will meet the inspector at the property. Plan to spend at least an hour, maybe two at the inspection. Feel free to follow the inspector around as he/she does the inspection. Ask as many questions as you wish (remember, there is no dumb question!). The inspector will prepare a written report at the conclusion of the inspection. A summary will be given to me, and you’ll get the full report. This is what we’ll use to make a decision about asking the sellers to fix whatever are the most critical problems. Remember, when you buy a “used” house, it will have problems. Which ones can you live with, and which ones must be rectified in order for you to complete the transaction? As a buyer, you have the power to ask for whatever repairs you need in order to go through with the transaction. The seller may or may not agree to do what you ask. Then the ball is in your court, and you will have to decide what you can live with and what is “bottom line” for you. If you can’t accept the sellers’ offer, you can terminate the contract.

I’ll prepare the Inspection Notice to the Sellers detailing your request for repairs, asking them to respond by signing the Notice agreeing to the terms. If they do, that’s fine. If they want to negotiate, I’ll handle the negotiations in consultation with you. The resolution will have to be decided by the deadline outlined in section 10 of the contract.

The next part of the process involves making sure that the title insurance commitment is in order. We’ll both get a copy of the title commitment. I’ll examine it to see if there’s anything that may need to be resolved. If the property you’re purchasing is in a covenanted community, we’ll both get a copy of the Declaration of Covenants and the Bylaws, plus the Financial Statements for the most recent period available. I’ll examine the documents to make sure everything is in order. You should read all title documents thoroughly so that you’re familiar with what’s required in your new community. If you object to anything in any of them, you may terminate the contract.

During the above process, the lender will be submitting your home loan request to an investor for final loan approval. Sometimes that takes a long time. Be patient! (Read my letter about why the lender may ask for what seems to be an excessive amount of information from you.)

About a week before closing, I’ll be in touch with the person who will handle the closing of the transaction, generally a title company representative. I’ll try very hard to get the this exact amount you’ll be required to bring to closing. It may be as late as the morning of closing before the figures are final. More often, it’s the day before closing. Don’t worry—this is normal. You have a “ballpark” estimate you can use in the meantime, but the exact figure won’t be certain until all the costs are given to the title company by your lender. Bring your checkbook, though. If it’s more than the “ballpark” figure, you can write a personal check for the difference. If less, the title company will write a check to you.

As soon as I know the time of closing, I’ll call you. The time is set by the seller’s agent, sometimes in consultation with me, but often not. I’ll tell you where the closing will be, usually at the title company’s office (the title company is chosen by the seller).

If you plan to read every word of all the documents, you can! Just let me know in plenty of time, and the title company will make sure you get them at least a day ahead of time.

On the day of closing, be sure to bring your “good funds” for the purchase. Plan to arrive within 5 minutes or so of closing, and plan to stay an hour or more. (I’m required by law to recommend you consult with a lawyer before signing any legal documents. Having said that, if you can, do. If not, you’ll need to decide whether or not my limited ability to practice law under the rules of the Colorado Real Estate Commission is sufficient. I can generally interpret a real estate contract, but I’m not an attorney. Colorado wants you to be protected.) I’ll be there too, overseeing the closing process on your behalf.

After closing is over, celebrate having passed through the fires of buying a home successfully, and accept my congratulations on what is usually considered the biggest transaction of your life!

As always, if you need to contact me with questions or comments, I’m available at 303-587-3509. Please feel completely free to call. I’m there to put your interests above the interests of all other parties, including mine. My job is to make sure you’re satisfied. If you’re happy with my service, tell your friends. If you’re not, tell me.