You have decided to enter into real estate transaction without the assistance of a realtor. Experience has shown that unless the buyer and seller are familiar with modern property transfer procedures, problems can surface which can delay closing and may result in additional closing fees. The purpose of the following information is to avoid such problems.
The Appraisal
Shortly after the buyer initiates a mortgage loan application, an appraiser will contact the seller. The seller should permit timely access to the property so that an appraisal delay does not hold up loan processing. If the appraisal indicates that inspections or repairs must be made to the property, the parties will need to determine who will be responsible for the expense. In most cases, repair(s) and inspections must be completed prior to closing.
As a seller, the following items are your responsibilities:
Title Insurance
Our closing department must receive a copy of the title commitment at least five days prior to closing. Be sure that the title commitment contains the name of the financial institution that the buyer is using to secure the mortgage as proposed insured.
Special Assessment Letter
This letter should be ordered through the title company. We must receive a copy at least five days prior to closing.
Closing Statement
This statement showing the expenses, credits and prorating between the buyer and seller must be received in our closing department at least five days prior to closing.
Payoff Statement/Satisfactions
Any outstanding debts against the property (i.e. first or second mortgage) or unrecorded satisfaction(s) should be sent along with the closing statement.
Warranty Deed and Wisconsin Real Estate Transfer Return
These documents must be properly prepared and executed (either an attorney or the title company can assist in this area). The loan will not close without these documents.
Compliance Certificate
If the municipality requires such a certificate with the change of ownership, evidence of the property compliance is required at closing.
Real Estate Taxes
A copy of the most recent year's paid tax bill must be provided at closing. An owner's affidavit is also needed if there are construction liens and possessions. A completed form must be provided at closing.
Well and Septic System
If the subject property has a private well or sewage disposal, proof that the well water has been tested and the septic system is functioning properly will be required at least three days prior to closing.
Condominium and Properties Involved With a Mandatory Homeowners Assocation
A statement is needed certifying that the association fees/dues are current as of the date of closing. This statement must be by an officer of the Association.
Utilities
Buyer and seller are responsible for notifying utility companies of change of ownership and for prorating water, sewer and fuel costs.
After the mortgage loan is approved, the buyer should set a closing date and time through his/her loan officer.
State Central Credit Union is providing these instructions for informational purposes only. Professional advice should be sought through an attorney, title company or realtor.
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