The Sellers accepted your offer…CONGRATULATIONS!!! You are probably excited, happy, stressed out, nervous, anxious, all of the above and more! You likely have more questions than answers right now. Keep reading to learn about the closing process in Murrells Inlet SC and what comes after your offer is accepted.
You have a contract once the offer is accepted and signed off on by ALL parties. Only written, fully signed contracts are enforceable – verbal contracts are not enforceable. Getting the offer signed off on will happen as quickly as possible but can take some time. It is important that you sign off on any changes as soon as possible so you can be officially under contract and have an enforceable contract. Once the contract is signed by everyone, the ball starts rolling. South Carolina is NOT an attorney review state.
Attorney
The contract is sent to your chosen attorney. If I am your REALTORⓇ, I will handle this part for you.
You will receive a call or email from your chosen attorney. They will open a file for your closing and start the title search to make sure there are no liens on the home and you will receive a clear title.
Your attorney or the Sellers’ attorney (depending on who is paying the HOA transaction costs) will also order a Certificate of Assessment from your HOA office, if applicable.
As we get closer to the closing date, we will schedule a firm date and time for closing. 99% of the time, closing will happen on the date listed on the contract.
Meanwhile, the sellers’ attorney will prepare the Deed to be signed at closing.
Lender
The contract is sent to your lender (if you are financing). Your lender will also need a copy of the contract. If I am your REALTORⓇ, I will handle this part for you.
You will formally apply for your loan. Your lender most likely will request updated documents from when you were pre-approved for your loan. Getting documents to your lender in a timely manner is very important. Not getting your lender the requested documents in a timely manner is the #1 cause for a delayed closing. Sometimes, the lender may ask for documents a second (or third) time or you may not understand why a lender needs certain documents. Feel free to ask your lender any questions about the documents that are needed but send those documents as quickly as you can!
Your lender will order the appraisal. The appraiser will contact me or the listing agent to schedule a date for the appraisal.
If you are purchasing a condo, the lender will also contact the HOA and have a Condo Questionnaire completed.
Verification of Funds
If you are paying cash for your home, you will need to prove the Seller(s) with a verification of funds letter. This letter needs to be from the financial institution holding your funds (bank, financial advisor, etc.). The letter does not need to state the total amount of funds you have available in your accounts. It only needs to state that you have funds available to cover the purchase price.
Inspections
Your home inspection needs to be requested. If I am your REALTORⓇ, I will contact your chosen home inspector to let them know the property address you are purchasing and when we need to have the inspection completed. They will give you a call to discuss pricing and options. Once you have decided on a home inspection plan, they will schedule the home inspection with the listing agent.
You can definitely attend your home inspection. If you cannot attend and would like me to attend, I will stop by the inspection towards the end so I can discuss any issues with the home inspector. You will also receive a home inspection report from your inspector the afternoon or evening of the home inspection.
Once the report is received, we will discuss any items we would like the Seller to repair or replace. Those requests will be written up in a Repair Addendum and sent to the Listing Agent to be discussed with the Seller.
The termite inspection will be completed closer to the closing date because that inspection is only good for 30 days.
Due Diligence Termination Fee
You can terminate the contract anytime during the Due Diligence Period by sending the Seller notice and the termination fee. The termination fee needs to be paid directly to the seller and is due to the Seller by 6:00 pm on the day the Due Diligence Period ends.
Make sure you allow enough time to have your inspections, send repair requests to the Seller, receive an answer from the Seller and get the termination fee to the Seller by the deadline.
Earnest Money
The earnest money needs to be mailed or dropped off at your attorney’s office. The earnest money check can either be a personal or certified/bank check (I will let you know what you need) and needs to be delivered to the attorney’s office by the date agreed to on the contract.
Local buyers or buyers still in town can drop off the earnest money check at their attorney’s office. Out-of-town buyers need to mail the earnest money check to their attorney’s office by UPS, FedEx or Priority Mail with the US Postal Service. Sending the check overnight and with a tracking number is the best way to handle the earnest money.
Insurance
You need to bind your homeowners’ insurance. If you are purchasing a home during hurricane season (June 1 – November 30), bind your homeowners’ insurance as soon as possible. Insurance companies will not issue homeowners’ insurance if there is a named storm heading in our direction. If you are financing your home purchase, you cannot close on your home without homeowners’ insurance.
Flood Insurance
If you are purchasing a property in a high-risk flood zone and financing, you will be required to purchase flood insurance. Homes in lower risk flood zones can also purchase flood insurance though your lender will not require it.
I would highly recommend purchasing flood insurance regardless of your flood risk zone. You can speak to your homeowners’ insurance agent about also purchasing flood insurance.
Utilities and Services
Also, closer to the closing date, you will need to set up or transfer any services in your name.
- Schedule your utilities to be turned on as of the day of closing
- Set up or transfer any pest control services
- Set up or transfer the termite bond
- Set up any landscaping services
- You will also need to update your new address with the Post Office
Funds for Closing
You will need to either wire funds to your attorney’s office prior to closing or bring a certified check the day of closing. Call your bank at least 7-10 days prior to closing to see what information they need to wire funds. Some banks can initiate wire transfers online or via phone call, but other banks require you to sign paperwork in-person.
Walk-Through
You will complete a walk-through 1-3 days prior to the closing. If you cannot be at the walk-through, I will view the property for you, video the walk-through and get your approval to move forward on the closing.
The sellers will need to have everything out of the home on the day of closing. If you are purchasing a furnished condo, furnished home or some personal property is staying with the property, it will still be at the property.
Keys
Keys will be distributed after the Deed is recorded. You will not be able to get the keys to the house until after the Deed is recorded unless other arrangements are made prior to closing. Once the Deed is recorded, we will meet so you can get the keys to your new home. I can either hold on to the keys for you or overnight them to you if you are not attending closing in-person.
Settlement Statement
Depending on how you are purchasing your home, you will either receive a HUD-1 Settlement Statement or Closing Disclosure. A few days before closing, I will receive a copy of the Closing Disclosure or Settlement Statement from your attorney’s office. I will verify that the numbers are correct and let you know the amount of money you will need to bring to closing. You may either wire the funds or bring a certified/bank check to closing.
Closing Day
Closings can happen in-person or by mail.
For in-person closings, you need to make sure your wire has been sent to your attorney’s office or you have a certified/bank check to bring to closing. You will also need to bring your drivers’ license and one other form of identification (if you are getting a loan). In-person closings typically take one hour or less depending on the amount of paperwork to sign and how many questions you have. Use this time to ask your attorney any questions about the closing documents that are unclear to you.
For a mail away closing, your paralegal will email or overnight your closing documents to you. Your paralegal will also include detailed instructions on where to sign and if you need a notary and/or witness. You may need two people (a notary and a witness) to help you with signing your closing paperwork. The notary and witness cannot be the same person and they cannot be related to you. Have these appointments set up prior to the closing date so you are not rushing around at the last minute to find someone. You will need to make sure your wire has been sent to the attorney’s office or you include your certified/bank check with the closing documents when they are overnighted back to the attorney’s office.
After Closing
My hope is our relationship does not end after the closing of your home. I will send you friendly reminders about applying for tax breaks, which restaurants to try, what shops you need to visit, hurricane tips and general information about your new town.
The closing process in Murrells Inlet SC usually lasts between 30 days and 60 day depending on how you are buying your home. The most important thing to remember is that you do not have to remember all of these steps now. If I am your REALTORⓇ, I will be sending reminders to you as we move through closing on your new home. Think of it as homework for your home purchase but without the grade.
Anytime you have any questions, you can reach me by phone/text at 843-267-2710 or email at Kathy@TeamRukat.com.