CONGRATULATIONS on the PURCHASE of Your New Home!

This is an overview to assist you in understanding what happens next, now that you have a signed purchase agreement in effect.

1) Earnest Money Check

Your earnest money check needs to be deposited with the Listing Realtor within 2 business days of acceptance of your offer. If Team Homes By Ash has the check, she will be mailing it or dropping it off. If you have the check, please ask our team's Transaction Coordinator or your REALTOR where the check should be mailed or dropped off.

There is another option to provide your earnest money to the Listing REALTOR electronically. It is called Trust Funds. Team Homes By Ash will set this up and an email from Trust Funds will be sent to your email. You would then fill out the pertinent information and the funds would be electronically sent from your account to the Listing office. There is a $5.00 fee for this service from the Trust Funds vendor.

2) Inspection

If your offer is contingent on you having an inspection, please reach out to your inspector right away. The timing of your inspection period can be found on your purchase agreement. This inspection period includes the completion of all inspections INCLUDING all negotiations between you and the Seller(s). For example, if your inspection period states 10 calendar days, you need to have your inspection completed within at least 8 calendar days, allowing at least two days for negotiations for any requests you may have and the Seller(s) to respond.

If you need a referral to an inspector, please see the Concierge Booklet provided to you by your Homes by Ash REALTOR team member at the beginning of your home buying process OR give us a call for a GREAT referral. If you use a referral from Team Homes By Ash, that Inspector will be able to schedule your inspection directly with the sellers and have access to the house as they are registered with the local Board of REALTORS. You are not required to be present at the time of inspection though this is highly recommended - when it's safe to do so. It’s a great opportunity for you to learn more about your new home!

3) Well and/or Septic

If your new home has a well or septic we will be looking for a Certificate of Compliance that states the septic has been pumped and certified by a State Approved SSTS professional.

The well water test can include testing for various items and depending on the type of loan you are getting, there will be different requirements for this testing which your Team Homes By Ash REALTOR will walk you through. If you, as the home buyer, will need to schedule this inspection, your REALTOR will be able to put you in touch with qualified professionals in the area to help you.

As of January 11th, 2021, The Minnesota Pollution Control Agency (MPCA) has adopted amendments to rules governing subsurface sewage treatment systems (Minn. R chapters 7081 and 7082) regarding situations in which a state disposal system (SDS) permit is required rather than a local permit, and in which tank pumping is required for completing a compliance inspection on an existing SSTS. Certification must be completed by an authorized and state licensed SSTS professional. Two bullets to know here...

- This affects anyone who has a sewer/septic system that passes between 0-10,000 gallons per day throughout the state of Minnesota
- If the system has been pumped in the past three years and was certified by an authorized SSTS professional at that time, this certification can be presented as sufficient documentation

4) Residential Property Governed by a HOA

If you are purchasing a Townhome or Condo, or even a home in a neighborhood community that abides by a Home Owners Association, you will receive documents called the Governing Documents and a Resale Disclosure Certificate. These documents state what is or is not allowed in regards to your new home. You have the right to review these for 10 calendar days. This is a state-required contingency when you purchase a property governed by a HOA. You will need to sign a receipt for these documents and we'll turn copies over to those parties of the transaction who need them (like the Title agent for example). 

5) Insurance

When you purchase a single-family home, you’ll need a quote for your hazard insurance. When you purchase a Townhome or Condo, you’ll need a quote for an HOA policy. If you have insurance on your vehicle, you can ask them to quote these items as ‘bundled’ for a better discount. At the time you’re buying your new home, it’s a good time to get a quote on both your vehicle and home and compare a couple of companies.

If you chose to get a second quote, please see your Concierge Booklet for another GREAT referral. You can often save $$ by bundling your vehicle and homeowner’s insurance. - If you do not have an insurance agent already, please refer to your copy of our Concierge Booklet for great local references, or ask your Team Homes By Ash REALTOR for trusted referrals.

6) Title Company

As the buyer, you have a right to chose the Title Company and location for closing. Be sure to let your REALTOR know your Title Company preferences (including time of day and/or location). Your purchase agreement will be submitted to your Title Company, so they can begin title work.

Your title company will be in contact with you. They will ask you to complete a questionnaire and possibly a 10-year address history. If you need a referral to a great Title Company, please see your Concierge Booklet.

Once your Title Company has been in contact with the seller's Title Company, they will schedule your closing. They will then provide you with a closing notification. This will tell you where and when the closing will take place, and what you may need to bring to closing.

7) Appraisal

When your inspection is completed as well as any items we may have negotiated, we will notify your loan officer. The loan officer will schedule your appraisal. The appraisal determines the value whereas the inspection determines the condition of your home.

If the appraisal comes back at a value ‘equal to’ or ‘higher than’ the sale price, and no repairs are required, then nothing further is needed.  If the home doesn’t appraise, then we re-enter negotiations. At this time, an amendment is drawn up and the negotiations would need to be agreed upon by both parties and signed.    

8) Final Underwriting Approval

Once the inspection and appraisal are completed, you will be working more closely with your loan officer. They will be gathering all of your financial information and submitting your file for final underwriting approval. Please do not be alarmed, but the underwriter often requires additional documents for information at this time.

9) Utilities

We will send you a list of utility providers prior to closing. Please contact these utility providers about a week prior to closing so you don’t forget to do this. If you forget, there is the chance you’ll incur a reconnect fee. If the house has City sewer/water, it is very important that you ask if there are any past due water/sewer bills and what date the Sellers have paid through. Please let your Team Homes By Ash REALTOR  know if there are any past due water/sewer bills.

You may want to ask the City for an estimated bill to the date of closing. Team Homes By Ash will request the Title Company to collect this at closing. Unpaid water/sewer bills stay with the house and can become future tax assessments if not paid.

10) Final Walk-Through

When the date of closing gets closer, you and your REALTOR will schedule your final walk-thru. A final walk-thru is generally done the day prior to closing or the morning of closing.

11) Final Numbers for Wire Transfer and Cashier's Check

Once you have the clear to close for your loan, your loan officer’s closing department will put together your loan package. This will be sent to your Title Company. When the Title Company receives the loan package and numbers from the Sellers Title Company, they will prepare a document called an ALTA /Settlement Statement. This will be provided to you and will include the amount of money you need to have for closing. Your loan officer will notify you of the amount needed once they receive the ALTA from your Title Company.

12) Closing Day

You’ve completed your final walk-thru and either have a cashier’s check or you have wired the funds needed for closing to your Title Company. Now it’s off to your closing.

Your closer will review the final numbers (ALTA) with you and walk you through your loan documents. Your REALTOR generally attends closing with you (as long as it's safe to do so), as will most Loan Officers in case there are any last-minute questions.

Please allow about an hour for your closing. You’ll receive keys, garage door openers, mail keys (if applicable), and often manuals regarding any mechanical items/appliances. In most cases, you will be able to have access to your new home right after closing.

CONGRATULATIONS and THANK YOU for your business!

Provided to you by Team Homes by Ash REALTOR of Keller Williams Realty Integrity Northwest

612-701-8368 | Lisa@HomesByAsh.com | HomesByAsh.com