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Mount Pleasant, SC 29464

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HARBOR CITY HOMEBUYER LEARNING CENTER

MESSAGE FROM BROKER/TOC
A. FIND YOUR LENDER
B. FIND YOUR REALTOR
C. FIND YOUR NEW HOME
D. NEGOTIATE YOUR PURCHASE CONTRACT
E. GET ORGANIZED FOR YOUR CLOSING
F. CLOSE YOUR DEAL

GET ORGANIZED FOR YUR CLOSING

1. Finalize Your Mortgage Loan. If you have obtained pre-qualification or pre-approval for a mortgage loan, then you very likely have already negotiated the key elements of your mortgage loan, such as the loan amount and the interest rate. In the weeks leading up to your scheduled closing, you should communicate with your loan officer to confirm that the appraisal will be completed on time, that they are in touch with your closing attorney, and that they are prepared to close the loan on the scheduled closing date.

2. Select Your Closing Attorney. In South Carolina, all real estate closings must be conducted under the supervision of a licensed attorney.

• Responsibilities of the Closing Attorney. The responsibilities of the purchaser’s attorney typically include: (a) ordering and reviewing a search of the title for the property; (b) coordinating with the purchaser’s selected lender; (c) coordinating the activities of other professionals that participate in the closing process such as realtors, property insurance agents, and surveyors; (d) preparing a settlement statement for the closing; (e) conducting the closing at their office; (f) submitting the appropriate closing documents for recording in the real estate records; and (g) disbursing funds to the parties and various vendors in accordance with the signed settlement statement.
• Finding a Closing Attorney. As with finding a lender, you should seek out the recommendations of your friends and family. You should also inquire about the approximate fees for their services. Keep in mind that you often “get what you pay for”, so you do not necessarily want to choose the least expensive closing attorney. Upon request, Harbor City can provide you with a list of closing attorneys that we have found to be reputable.

3. Order a Survey. A survey may or may not be required by your mortgage lender. Regardless of your lender’s requirements, it is always advisable for you to obtain a survey for your own protection. A survey will identify any property line encroachments, violations of building setbacks, and other property defects that may need to be resolved before you proceed to closing. Some closing attorneys will order of a survey on your behalf, but this is not always the case.

4. Review Property Inspection Results. Your purchase contract may give you certain rights in the event that either the property inspection report or the termite inspection report reveals the need for certain repairs. You should review the results of these reports with your realtor and your attorney to determine the appropriate course of action.

5. Review Your Title Insurance Commitment. In South Carolina, the closing attorney typically wears a second “hat”, and serves not only as the purchaser’s attorney but also as a licensed agent of the title insurance underwriter. Among other purposes, title insurance protects you from defects in the chain of title. Examples of these defects include fraud and forgery of deeds and other recorded documents, clerical errors, incorrect indexing, and undisclosed heirs. In his or her title agent capacity, your closing attorney will research the title to the property and prepare a “title commitment”, which is a written summary of all material facts and documents that affect the title to the property. The “title commitment” will include the following:

• Title Requirements. This is a list of matters that the title insurance company requires to be addressed as a condition to issuing a title insurance policy. The most common example is one or more mortgages that the seller placed on the property. At closing, your purchase price should be applied to “payoff” these mortgages before any remaining proceeds are available for disbursement to the seller. In the event that other liens against the seller, such as tax liens or litigation judgments, are discovered in the title search, then these liens will also be listed as “requirements” that must be satisfied at or prior to closing.
• Title Exceptions. This is a list of matters that will continue to burden your title after the closing. If you are buying a home in a planned community, your “exceptions” very likely will include a lengthy set of covenants and restrictions that apply to your subdivision. You should read this document so as to confirm your willingness to live with all applicable restrictions. Other “exceptions” might include some utility easements or a fence encroachment revealed by the property survey. You should ask your closing attorney to explain all of the “exceptions” listed in your title commitment and how they may impact your ownership of the property.

6. Line Up Homeowner’s Insurance Coverage. In addition to obtaining hazard and liability coverage for your own protection, you will need to satisfy your lender that they are also protected by insurance. You will need to advise your closing attorney of your preferred insurance agent so that arrangements can be made for evidence of insurance to be provided to your lender.