Buyers Questions

My name is Sheila Wiley. I am a REALTOR, a Broker, and I work as a Buyer's Agent in Springfield, Missouri.

I work for buyers looking to purchase a Single Family Home in Springfield, Republic, Ozark, Nixa, or Fremont Hills. I also work with buyers of Vacant Land anywhere across Southern Missouri—recreational or investment, but not logging.

You may have purchased before, or you may be a first-time home buyer. The process is not as simple as it may seem, which is why you want an advocate watching out for your interests. In real estate, that is called a Buyer's Limited Agent or a Buyer's Agent.

Every home purchase has the potential of running into problems, big and small, and it can be stressful. You want to be surrounded by professionals with the answers to whatever comes up. That starts with hiring an agent that you can trust, that has the network and resources to support you, and I know you don't want to make any mistakes.

So, let's start with the elephant in the room: the money.

1. Financial Readiness & The Fear of "Hidden Costs"

Right now, affordability, interest rates, and the fear of going broke are the absolute top concerns for buyers. You are likely terrified of hidden expenses popping up after you are already under contract.

"How much money do you need to have saved to buy a home?" Depends on the type of the mortgage loan. Which is why you need to contact a mortgage broker, instead of just walking into your local bank and filling out a loan application.

A mortgage broker works with dozens of different loan providers, including the government loans. They are paid by the lender when you close, they are available when you need them, not 9 to 4 like your local bank, and they protect your credit score by pulling it just once and providing it to each lender in searching for a loan for you.

The Mortgage Broker will look at your specific situation and be able to advise you on everything you need to know: your creditworthiness, and how much home you can afford. Depending on the type of loan and your credit, your down payment could be zero to 20% plus.

"How will you be purchasing the property?" Offers that are submitted to the Seller for consideration must include proof that you can close. No exceptions.

If you are getting a loan, a letter from your loan officer on the bank's letterhead can be emailed directly to me so I have it on hand. If you are paying cash, your bank can send a letter on letterhead to the amount of funds on hand. If you are planning on using any type of investment where the funds are not liquid, it is critical to find out the process and the length of time it takes to gain full access to the funds.

I can send you local loan officers to help you secure a mortgage. Be sure and understand the entire process of whatever lender you choose. Everyone assumes the process would be the same, and not only is that not true, some can be a nightmare to work with. Some lenders create mortgages and then sell them on a secondary market; some keep every mortgage in-house. Some lenders will do their own appraisals; some are required to send a request for an appraisal. All depends on what you are comfortable with.

"What are closing costs, and who pays them?" Depends on your sales contract. Your sales contract is an agreement between you and the Seller, period. How that sales contract is written, and what you ask the Seller to agree to, will determine what your personal closing costs will be. You can ask for any concession that relates to the real estate or monetary compensation in your sales contract. Does not mean they will accept it, but you can ask. Seller concessions in a sales contract are common. This is where the skill of an experienced agent is important, because how the Seller concessions are written does make a difference.

"Will my mortgage payment change, and how do taxes/insurance factor in?" These are questions for your Mortgage Broker or lender; they are your experts.

"What if the appraisal comes in low?" You have options depending on how your sales contract is written. There is a section on appraisal that you will need to read and understand, because it could limit your options if the appraisal comes in low.

You could send the appraisal to the listing agent so they have proof of the low appraisal and ask the Seller to agree to a lower sale price so that you can move forward and close.

The Seller may want to have a second appraisal done, if there is time. But they would pay for it. When an appraisal comes in low, it is important to remember that it is an opinion of one appraiser; it is not carved in stone.

Both parties to the contract accepting the appraisal means that there would be an adjustment to the sales contract, and your bank would adjust the loan amount to match the appraisal.

If the Seller disagrees and refuses to lower the sale price, then your options would be to void the sales contract, have your earnest money returned, and keep looking, or agree to pay the difference at the closing table so you can close. There may be other solutions, and you could discuss those with your agent and see if you can get the Seller and the bank to agree.

"What if the appraisal comes in higher than the sales price?" A lot of agents don't know the answer, but it is excellent news! It is built-in equity. It means that your home is already worth more than what you are going to pay for it. Congratulations! But you do want to keep it to yourselves! Neither the Seller nor their agent has any right to know what the home appraised for; simply say, "It appraised."

2. Agent Compensation & Representation

With recent industry changes regarding buyer broker compensation, you are likely anxious about how your agent gets paid and whether you will be on the hook for those fees out-of-pocket. You also need to know exactly whose side everyone is on.

"How much do you charge, and who pays your commission?" My compensation is not public, but a private conversation. I will tell you a couple of things upfront. It is negotiable, but once set, it is no longer negotiable. All of my expenses are mine, you are not asked to share any of them, and I do not get paid until you close.

I will always ask the Seller through a concession on your sales contract to be paid as a line item on your sales contract. Sellers are expecting this concession, and it is negotiable. I will have a conversation with the listing agent even before we make an appointment to see a home about Buyer's Agency compensation. If what is being offered is less than what is on my signed Buyer's Agreement with you, I will advise you before seeing the house so you can decide. By Missouri law, I cannot be paid more than what is on our Buyer's Agency Agreement, which means that if you are responsible for part of my compensation, it will never total more than what you and I agreed to.

"Why do I have to sign a Buyer Representation Agreement before we look at houses?" Excellent question, and the reason is representation. My job as your Buyer's Agent is not to tell you what I think you should do, but to provide you all of the information to the best of my ability, so that you can make an informed decision. By the laws and rules of the Missouri Real Estate Commission that holds my license, and the policy of my brokerage, being hired as your Buyer's Agent is the only way that I can advise you and show you properties.

You can sign a Buyer's Agency Agreement to see one house, or for one day, or for as long as it is going to take you to find something and close. The agent cannot be paid without that Buyer's Agency Agreement showing that you agreed with your signature.

How Representation Actually Works A Buyer's Agent is a designated agent under contract to represent the interests of the buyers to purchase property in a specific timeframe. In Missouri, an open-ended contract is not a legal contract. A Buyer's Agent cannot give you legal advice, or act outside their authority as a real estate agent.

The Seller's Agent is responsible for the interests of the seller. As a Buyer's Agent, I do not share any information about you to the Seller's agent that they have no right to know. Some Seller's agents will ask for as much information as they can in an attempt to gain an advantage should there be a contract negotiation. For instance, if you have your home under contract and need to find your new home quickly, that could easily be used by a Seller to counter any offer made. I protect your information.

If it happens that you want to make an offer on a home that I have listed, that would put me in the position of working as a Dual Agent. I have worked as a Dual Agent numerous times throughout my career. First, there is a notice that everyone signs so that it is understood that I am working for both parties. Knowing that neither party will fully understand what it means to work with a Dual Agent, and will unknowingly tell me information that could be used against them in negotiating, I keep everyone's confidence, forever. I work to make it a win-win for both parties and never share information between the two parties that is confidential to them.

"What happens if the seller refuses to pay your fee?" The chances of this happening are zero because of the process I follow. As my client, you are going to send me properties that you are interested in, and I send you back all of the information I can find on that home. If that home makes it to your final list of properties you want to see, then I call the listing agent and have a conversation with them about Buyer's Compensation, among other things about what the Seller's needs are, and questions about the property.

At that point, if the Seller is planning on paying less than or none of the compensation that you and I agreed to in my Buyer's Agency Agreement, I will call you and let you know so that you can make a decision about whether or not you want to move forward to see this property. When I write your sales contract, my Buyer's Agency compensation will be a concession on your sales contract, a single line item that is the Seller's responsibility to pay. When the Seller signs the contract, then everything in that contract is set; every party to the contract works in good faith towards closing.

"What exactly do you do for me that I couldn't do myself on Zillow?" If purchasing a home were as simple as finding a picture of the perfect home for you, then you wouldn't need anyone. Truth is, Missouri is a "Buyer Beware" state, which means everything is for you to find out before you purchase, and your sole responsibility after you purchase. Which means you need me to represent your interests through every step of the process, including working with the professionals that do the work that I don't. I may write the contract, but you need to hire that inspector, not that one; you need to hire that title company, not that one; you need to talk with a CPA about what this purchase will do to your taxes, and I have a good one within my network.

Nothing about purchasing a home is as simple as it appears looking from outside the industry. If you tried to start the process by yourself, I don't think it would take long before you thought twice about it.

No need to paste it again! I have all your answers saved right here.

I am going to take your exact answers for Concern #3 (Inventory Anxiety) and seamlessly weave in your existing presentation's advice on setting up the MLS search, the "Must-Haves" checklist, and your brilliant tips for actually going to look at houses (like the warning about video cameras and bringing snacks).

Here is exactly how Section 3 will look:

3. Finding the Right Property (Inventory Anxiety)

Right now, buyers are stressed about low inventory. You might be worried that you will have to settle for a house you don't love, or that you will be searching forever. Here is how we tackle the house hunt together to make sure you get exactly what you want.

First Step: The "Must-Haves" Before we look at anything, I want to not just get an idea of what you're looking for, but a comprehensive list of "Must-Haves" and "Would be Nice to haves."

  • Minimum number of Bedrooms, Baths, Square Footage.

  • Single Story? Stairs? Minimum number of Acres?

  • I want to know what area you would like to live in, and why. Would you be open to look in other areas?

  • Do you need to commute for work? What type of work do you do?

  • Do you have school-age children? Public or Private Schools? (I can provide School Reports).

  • What type of activities do you like to do as a family, or for yourself?

  • Do you have pets or animals moving with you? Do you need special fencing, outbuildings, or nearby Dog Parks?

"What if we can’t find anything in my price range?" Then I would suggest that we narrow your search to the neighborhood you want to live in. Once you know where you want to live, I can start talking with area agents about any pocket listings that they might have in that neighborhood, off-market properties that have owners willing to sell. I can start reaching out directly to homeowners that own homes that most closely match your criteria about your interest.

"Do you have access to houses that aren't on the internet yet?" Our MLS has a "Coming Soon" classification to give members a heads-up that something is about to hit the market, but no, no agent has a secret list. But I can put the word out across the area that I have a buyer looking for a specific type of property. Every agent is anxious to get every potential buyer to see their listings. It works really well.

There are some brokerages that have "Exclusive Listings" that you can only see through their agents. It is a trend to capture more buying clients, because once you have signed that contract with them, then they represent you. My personal opinion is the chances that the home you will end up purchasing is being hidden on someone's "Exclusive Listings" website is pretty slim, but it is a decision you have to make for yourself.

The Property Search: MLS vs. The Internet To start, I will use your criteria to do an initial search on the Southern Missouri Regional MLS System. I will set it up so that whenever an agent posts a new listing that matches your criteria, or lowers the asking price into your range, the system sends it to you instantly; you will be one of the first to find out about it. You get your own dashboard where you can save properties that you like.

But understand, our local MLS only shows the listings of its members. Now those MLS listings are syndicated to hundreds of real estate websites like Zillow.com and Homes.com, where ALL Realtor listings are shown, but only about half of all real estate agents are Realtors, and what about For Sale by Owners? Until you find all of the real estate websites that are showing listings in our area, you are not seeing everything available.

As my client, I work to represent you with all real estate agents, with folks that are selling their home themselves, any seller anywhere. Any property you find, anywhere on the internet, forward it to me, or send me the address, and I will respond with everything available (Seller's Disclosures, aerials, etc.), and answers to any questions you may have. (For Vacant Land and Farms, I can also provide topographical maps, satellite images, and soil surveys).

"How fast can you get me into a house when it hits the market?" I am a member of a showing service, Showami (showami.com). It is a professional showing service that only uses licensed agents, so if I am not available, I can have an agent be there and show you the property pretty darn quick. It is subject to availability, but between my own network of agents and the showing service, I am confident that I can get you inside as quickly as you can get yourself there. If you're standing in the front yard, then pretty darn quick.

If it is a market so hot that you have looked at the 3D tour, all the pictures, and you want this home, then we can write an offer "Sight Unseen." The contract is subject to all of the same inspections and whatever the contract calls for, but you don't have to be there in person if you need to move fast. I have sold a lot of properties "Sight Unseen" just because my clients are out of state.

Going to See the Properties Once you have a final list of properties that you want to see, I will map them out and make appointments, leaving time for short or long breaks to make the best use of your time. When we go:

  • Come prepared: Have bottled water, maybe even a few small bar snacks with you. I will have a printout of each of the properties from the MLS and a Home Checklist I created so you have a place to make notes.

  • Watch what you say: There are recording video cameras everywhere, so don't show that you are excited about a property and start talking about making an offer inside. That can only work against you in negotiation. We can talk out by the vehicles away from the property.

  • You are in control: If we pull up to a house and there is anything that has made you change your mind from the outside, you are not obligated to look at the house. On the other hand, if you find one that you want to make an offer on, I will ask you if we are done, because it is easy enough to call and cancel the remaining appointments.

  • A note on Open Houses: Open Houses are different. You can visit any Open House and are not required to sign an agreement. If any agent at an Open House tells you different, you are welcome to tell them you have an agent and give them my name. Don't be bullied.

4. Overpaying & Navigating Multiple Offers

Buyers are afraid of being taken advantage of. You want to win the house, but you don't want to suffer "winner's remorse" by paying drastically over market value. Here is how we ensure you make a smart, winning offer.

"How do we know what this house is actually worth?" Excellent question! I use the Realtor Property Resource (RPR) platform to provide you the most solid data available to show exactly what that house is worth. The database holds every public record, plus data from 98% of the MLS systems across the U.S. on millions of homes, and can only be accessed by members of the National Association of REALTORS. No one has more solid data.

When I put in an address, I can see every public record, and I will run a Comparative Market Analysis (CMA) on that home against similar homes in the area in the last 30 days (which may include homes that have never been on any MLS). The analysis will give me a breakdown and explanation of the data, so you never have to rely on just what I think; you will have solid data from what the market shows.

"How much room is there to negotiate the price?" Another excellent question, and it has so many factors that have to be considered that all I can do here is tell you every single home is different, and we just have to be there to make that decision. If a home was put on the market way too high, say, 60 days ago, the market knows it is too high on day one. But at some point, the longer it is on the market, when they finally lower the price, people are looking at the days on market and thinking something is wrong with the house. That brings lowball offers, which the Seller probably won't take, and the entire thing snowballs and gets worse.

If it were one you were interested in as soon as it hit the market, and you wanted to make an offer, I would run that CMA on the RPR platform and send that in with your offer to the Seller. Point is, it depends on the home, the market, the Seller's situation, and yours.

I am a skilled negotiator, and can advise you as to how much you might offer for a property. But I will only advise you. I will not argue with you, or attempt to make your decision for you. This is your transaction; my job is to bring you the best advice that I am able, so that you can make an informed decision.

"How do we beat other buyers without offering way over asking price?" I use the standard legal forms provided by our state association of REALTORS and a few from my brokerage to complete your transaction. I can't guarantee that I can write a contract that will win you the house, but there are things that I do that I know help.

Before we write the contract, the first thing I will do is reach out to the listing agent to let them know they have an offer coming in. This lets them know that if they have an offer, or offers in front of them, to also expect your offer. I tell them that I strive to write the cleanest offer that I can and eliminate as much back and forth as possible. I ask very specific questions: What are the Seller's needs? How much time do they need to move? Are there any special considerations? With every answer, I ask if there is anything else. Once I have all of that information, you and I can sit down and understand exactly how we can write the best offer possible. The closer we can write our offer to meet the needs of both you and the seller, the better our chances of getting an accepted offer over other buyers.

A Note on Personal Property and Solar Panels The sales contract is an agreement between you and the sellers for real estate, and items being offered to convey with the sale, like kitchen appliances. If there is furniture, appliances, or any other type of personal property that interests you past what is listed on the MLS, it needs to be sold separately on a bill of sale. It is important to understand that raising the property price to include personal items skews the real estate value for the future (like property taxes and resale). Banks will not tolerate it at all, because they are loaning on real estate, not personal property.

  • Solar Panels: Solar Panels are considered personal property, not real estate. They have a value, but they will not show up on an Appraisal. They should be considered personal property that will convey with the sale, even though the Seller may have a balance that becomes due with the sale.

"What contingencies should I waive, and is it safe to do so?" Because waiving contingencies is literally removing your rights to certain things that were put there to protect you as the buyer, I say, strongly and loudly: do not make any of these decisions without careful consideration. You may want to win the contract, but they could have consequences. Even a brand-new built home could have wiring that shorts out, underground pipes that have collapsed, plumbing that was never connected to the system.

Securing the Offer with Earnest Money Earnest Money is usually a part of every contract. It shows that you are a serious buyer, ready to put some money into the offer upfront. The money will go towards the purchase of the property, unless otherwise specified in the contract.

You can wire your earnest money instead of having a check floating around. If you leave a check, it is only sent to the closing company if your offer is accepted. Which means that you are going to leave it with me until that happens, or not. I will ask you for clear instructions on what to do with your check if your offer is not accepted. Once the earnest money is in the closing company's insured escrow account, it takes both parties to agree who it should be returned to if the deal falls apart. I write my offers to do everything I can to protect your earnest money. Because each contract is different, every purchase situation is different.

5. The "Money Pit" Fear (Property Condition & Inspections)

Buyers are terrified of buying a home that looks great on the surface but has failing foundations, an old roof, or bad plumbing that will cost them tens of thousands of dollars later. Here is how we ensure you know exactly what you are buying.

"Are there disclosures about the history of the house?" Seller's Disclosures are always given to the Sellers to fill out, but here is the truth about disclosures in Missouri: The disclosures are only going to cover the time that this Seller owned the property; they obviously can't tell you what they don't know.

Missouri is a Buyer Beware state, meaning you are only assured of knowing everything there is to know by inspections, which you can have any that you want, at your expense. Sellers are not required by law to provide any disclosures past the Federal Lead-Based Paint Disclosure for homes built before 1978, and a disclosure for Methamphetamines that are Federally and State required. I will always recommend a Home Inspection, even if it is a Conventional loan and doesn't require an inspection, so that you at least know what needs to be repaired.

My Network of Professionals I have a trusted network of professionals, such as CPAs, Mortgage Brokers, Inspectors, and Attorneys. As your Buyer's Agent, you will have access to my entire network. Home Inspectors, Termite Inspectors, Home Repair, Roofers—all of these you want several you can call on. They stay very busy. I can help you navigate all of this, because there are some you want to stay away from.

"What if the home inspector finds something drastically wrong?" Your sales contract protects you for just this type of situation. By your sales contract, you have options. The inspection period is a critical one, because if there is anything found that makes the property unacceptable, you can void the contract and have your earnest money returned.

There will be a full inspection, done before the deadline, and reported directly to you. Do not assume that I received a copy. You will need to send that to me right away. Or you can, in the time allowed, submit an Inspection Report that shows what the inspection found, what the recommendation was, and what your request is. You can ask for a repair, or compensation for the repair to be done after closing, or arrange for funds to be set aside for repairs—whatever makes sense to you, the Seller, and the lender.

"Will the seller fix problems, or do we have to walk away?" Once the inspection is done, and the repairs or changes are up to you—meaning it is not a government loan—you can walk away, or submit an Inspection Report for what you want done.

You cannot assume that the Seller will do all or any of the repairs. They will respond with an answer to your Inspection Notice on a deadline. Understand this is another point of negotiation: you ask, the Seller answers, you decide if the answers are acceptable. I have had Inspection Reports go back and forth in negotiation and most do find a way to work it all out. The next step could be the repairs, then the reinspection of the repairs, then notices of acceptance or not. It is all done on deadlines that can be extended if necessary, and if both parties agree.

A note on Government Loans: I mention the lender, because on government loans they send their own appraisers, and those appraisers will report repairs or changes that need to be done before the house will qualify for that government loan, and those have to be completed and reinspected before closing. If it is a government loan, they submit their report which is nonnegotiable, while yours still is.

"Can we get a home warranty?" Home Warranties are available to anyone at any time; there are several providers that are easy to find on the internet. Some Sellers will offer a Home Warranty with the sale, or you can ask for one. Typically it is pretty easy for the Seller to add the cost of the Home Warranty to the sales price, and you want to check out what it is that they cover before you press the point. If you're buying a new home where the HVAC and appliances are all still under warranty, then it may not be an issue. Anyone can get a home warranty for about $500 a year.

Here is exactly how Section 6 will look.

This is the grand finale. I have seamlessly blended your new answers about timelines and wiring money with your legendary "Underwriter" story, your explanation of Title Insurance, your brilliant "don't close on a Friday" advice, and your final call to action.

6. Process Overwhelm & Timeline Stress (The Finish Line)

Especially for first-time buyers, the sheer number of steps, documents, and deadlines is incredibly intimidating. You might worry a simple mistake will cost you the house or your earnest money. Here is exactly how we manage the timeline so you make it to the closing table safely.

"What happens after our offer is accepted?" That is such a good question, because I see so many buyers with all the flurry of activity that happens to go and look at homes, getting that mortgage loan preapproval in place, and submitting the offer, think they can finally relax.

When that offer is accepted, it is now a contract with deadlines, and the clock starts ticking on all of those deadlines. It is another one of those times when there will be a flurry of activity as you and I get everyone who will be involved in this transaction going on what we need them to do. I immediately submit your contract to your loan officer and the closing agent. I can provide you all of the contacts to cover the different types of inspections you want done. It is up to you to make those appointments, and get that information back to me and your Transaction Coordinator. Your loan officer will order the title work and the appraisal.

Smooth Transaction Management I have Transaction Coordinators whose sole job is to facilitate the transaction process. This ensures all paperwork and legal requirements are met. Our transaction coordinator knows what all the deadlines are and will stay on everyone to make sure they are being met. You will need to be available to make appointments for inspections and making decisions.

Then, as the process actually starts moving towards closing, there will be a lull; it may feel like nothing is happening. You are welcome to check in with the Transaction Coordinator and/or me anytime. You will be kept informed through every step of the process to keep it as stress-free as possible. I will be aware of everything happening and will jump in if needed. Truth is, everyone thinks that everyone else's closings go smoothly, and they don't. Every closing hits a problem; you just don't know when it will come up, how big it is going to be, or what it is going to take to fix it. I have the experience and the network to help me find quick solutions to keep everything on track towards closing.

"How long does it take from an accepted offer to getting the keys?" Most loans can be processed within 30 days. But before we write an offer, you can contact your loan officer and ask, "What is the first day we can close?" Could be anywhere from 14 to 30 days.

But remember, different loan types have different requirements. The appraiser may get out right away and give you a list of things that have to be completed or repaired, and be completed and reinspected before closing. Then it doesn't matter that your bank can process your paperwork faster than 30 days. Point is, everyone that has a part in the transaction has to have time to get their part completed before you can close. I've had an empty house, sold for cash, close in 10 days.

"What if my loan falls through at the last minute?" (Have you heard the one about the Buyer who applied for a Mortgage?) If you are working with a loan officer on securing a mortgage, your job is going to be the most stressful. This next part is something I tell every home buyer, because the time will come when I will need to remind you that this part was coming.

If your mortgage officer does a preliminary on your credit and gives you the preapproval, that doesn't mean the Underwriter will be able to give you a final approval for the loan. I want you to picture the Underwriter as a person sitting in front of a computer screen with dozens, maybe hundreds of loan applications that they are responsible for. They have the critical job of determining your qualification for repaying your mortgage loan. All they have are boxes of information that are submitted to them to make that determination.

So the underwriting file for your mortgage loan starts, and they send your loan officer a bunch of stuff that they need to fill in the boxes. Your Loan Officer calls you and tells you what Underwriting needs. You send it to your Loan Officer, and hopefully they send it on to Underwriting. At the point that Underwriting comes back around to your file, if there is something missing they send a request to your Loan Officer. Your Loan Officer calls you and requests the information. It could possibly be information that you have already sent. Sent several times.

Until the system somehow improves, you need to keep your eye on the prize—moving into your new home—clench your teeth and send it again. Everything you send, keep in a handy file on your computer so when they ask for it again, it is ready to go. Less stress already. Hopefully someday it will even be funny.

Sometimes the Underwriter comes across something that requires them to deny the loan, and it can happen at the last minute. Sometimes it is something that the buyer does, like goes out and buys a new car, changing the entire debt-to-income ratio. What happens is you are going to be out the fees you paid for the appraisal, and some others; you may be liable for the title search and work that was done on your behalf. But these are not as common as they used to be, and you will be advised on what not to do.

Title Insurance Part of the process of conveying the property will be a Title Search. The Title Agent goes back through the filed legal documents on the property searching for anything physical, like property line disputes, to liens against the property like mortgages, back taxes, work that was done that has an outstanding debt, or equipment like a Solar System that has outstanding payments.

Once the search is complete and the Title Agent is ready to provide Title Insurance, they publish a document called a Title Commitment. The Title Commitment is sent to me, and I will forward it to you. It will have everything they found in their search. It will show if there is a mortgage, and any debts that will be satisfied with the disbursement of funds at closing. You will pay a one-time premium for a new Title Insurance Policy and if you have a mortgage, that lender will also receive a separate policy in case you default on your loan. This Title Insurance pays for any legal fees should anyone ever make a claim against your property that happened before you owned it. When it arrives in the mail, it should be kept with all of your other insurance policies.

"When do I actually have to hand over the money?" The earnest money is wired directly to the closing agent, and that goes towards the purchase. The remaining monies due to close are either wired before closing, or are waiting for the mortgage lender to approve the closing paperwork and then wired to the closing agent.

Closing Day Closing is you and the Sellers signing a whole lot of paperwork, unless it is a cash deal, those go really quick. You will need to bring your driver's license or passport—some legal ID. The closing agent will go over every document before you sign, and you will receive a copy of everything you signed.

This is usually when you receive all the keys, remotes, and everything else from the Sellers. A lot of times this will be the first time that both parties can actually talk to one another, so there is lots to share and remember. Once both parties have signed, the closing agent makes copies, gives everyone their checks, and we go celebrate!

If there is a bank involved, sometimes all the paperwork will need to be sent to them for final approval so they will make the funds available. I've experienced these taking hours. So when you go shopping for a mortgage, you might want to find out what their procedure is. The local banks will either do all of their paperwork with you ahead of time and they send over a bank check to close. Some of them send the Loan Officer to the closing to do their part at the closing table and bring the funding check with them.

A pro tip: You don't want to close on a Friday. If anything goes longer than expected, you will be into next week to get it dealt with so you can actually close. I've always found that the middle of the week is best. The closing agents aren't as busy, and you have reaction time for any last-minute snafus. Part of the job of the Closing Agent is filing all the necessary legal documents at the County Courthouse. You will receive a copy of all the recorded documents by mail.

Reach Out Everything in our world keeps getting more complicated. I want you to know that whatever comes up, I want me to be your first call. If I can't help, chances are good that I know someone who can. I'll be your first friend in the area!

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