THE VANDERGRIFT COMPANY

After the purchase agreement is accepted by both parties the normal chain of events is as follows:

1. A home inspection can be done on the property at purchaser's request and expense. There is usually a time limit of ten business days when this is to be done. It can be done by a professional company or the purchaser himself.

2. An appraiser makes an appointment to go through the house for the bank or mortgage company through our office. The house must appraise for what it has sold for or more. This report is sent in to the bank by the appraiser and depending on how busy he is, usually takes about ten days to two weeks.

3. Title work is ordered from a title company (an owner's policy for the seller and if there is a loan, a mortgage policy for the bank).

4. Once the bank has the title work, appraisal back, and all the verifications of work & income from the purchaser, they will send it to their underwriting department and if all is in order, they will approve the loan and set a closing date with the real estate company who will contact all parties and set the date up.

5. Upon the setting of the closing, the seller's mortgage payoff is ordered to be paid off through the date of closing and mail time.

6. At this point our office prepares closing figures, faxes them into the title company or bank, and then gets them to you. If you are the seller, then you know what you will be netting and all of your expenses BEFORE you sit down at the closing.

7. WE WANT NO SURPRISES AT THE CLOSING. IF THERE ARE QUESTIONS OR PROBLEMS, THEY COME UP BEFORE WE SIT DOWN AT THE CLOSING TABLE.

1. Current property taxes if due.

2. Delinquent property taxes if due.

3. Tax proration to the current closing date.

4. Mortgage payoffs.

5. Transfer tax to the state you live in.

6. Title expense.

7. Commission to realtor.

8. Sewer and/or water bills that are due.

9. Sewer and/or prorates usually to possession, if that is the custom in your area.

10. Deed preparation

11. Overnite mail charge to pay off mortgage

There also can be other fees if you sell FHA or VA.

An owner's policy that you received when you purchased your home, depending on the state you live in, can be turned in to the new title company when you sell your home, for credit. The longer you have lived in the home, the less credit. In Michigan, even if it has been ten years, you receive 10% of the policy cost at the time you bought the property originally. Sometimes it is only $20.00...but that is better than nothing. Always check with your realtor or title company for this credit.

Always check with your closing agent or realtor about physically walking your mortgage payoff over to your bank rather than sending it in the mail...many times over a weekend, you could save over a hundred dollars in interest fees.

Many title companies are now doing deeds for "free" in order to get your business. They have one of their staff attorneys look it over and it saves you forty or fifty dollars.

And last but not least, if you are closing at a title company instead of a bank, don't be afraid to ask them to reduce their closing room fees, if they have one.They are negotiable and they want your business, however, you should do this first thing before you settle on a title company.

Remember, it all depends on the state you live in but at least try some of these ideas.

Realtors and title companies sometimes forget that this is YOUR closing, and you want to save as much money as possible.