Things you should be aware of and be responsible for when buying and after acquiring a property
There are many things you should be aware of when purchasing a home and be prepared to take action to ensure a smooth and trouble-free transaction.
Staying in touch with the site managers / agents / closing attorneys / builder representatives.
- Stay in contact when needed to perform inspections, repairs, signing papers to make sure the ball isn't dropped. Your local agent will do their best to make sure the transaction goes smoothly but it doesn't hurt to do some personal follow-up of your own to make sure all is well with the transaction.
Stay in close touch with your lender
- Stay in contact with your loan agent to make sure that the terms that were discussed or promised are still in place, your agent will do the same. It's also good to stay in touch to make sure that the qualifying process is on schedule so there are no delays in the closing of escrow.
Property Insurance (Hazard / Flood)
- This may seem insignificant but without property insurance and proper coverage the lender will not allow the escrow to close. Be sure to get quotes well in advance to be sure you have acceptable insurance in place before close of escrow. If you are unsure what insurer offers coverage in your property's area ask your agent, builder agent, escrow agent to refer you to one. Get a couple of quotes because the premiums can vary.
Signing Closing Papers
- Just before closing you will have to sign loan documents and final closing papers. There are a few different ways this meeting can occur; one, you will go to an escrow or title company and sign papers there in front of an employee who is also a notary. Two, you can have the closing papers sent directly to your residence or work where a professional signer/notary will come to you personally to finalize paperwork. Three, if you are unable to utilize options one or two you can elect to have a representative via power of attorney (usually the local agent to the property) sign your paperwork at the escrow or attorney's office for you.
Closing Papers
- Make sure you get copies after you close, most escrow, title or law offices are good about disbursement of closing papers but if you don't get the paperwork within a month you need to call your agent and/or escrow, attorney office to inquire how to get the paperwork. You need these documents for taxes so don't let this one lapse.
Utilities
- After escrow closes find out from your assigned management company if you need to contact the local utilities to your new investment property and reassign the services in your name. Sometimes the management company will take care of this for you so find out ahead of time. If this is left undone the utilities will be shut off and extra time and cost may be needed to get the services back up and running.
Home Owner's Association paperwork, rules, and keys
- Many of the homes you may buy will be governed by an association and CC&Rs (Covenant, Conditions & Restrictions). You should be receiving copies of the CC&Rs, rules and regulations/ by-laws, master insurance policy for the community, articles of incorporation, budget and financials, keys to pool/mailbox/pedestrian or automotive gates. Be sure you get a set of copies for your records. The management company may need an extra set to provide copies to your tenants. Contact your management company to find out what they need. Be sure that the association has your home address so they can send you correspondence, association dues, invoices, etc.
"Property Tracker"
- Is a web based subscription service that helps you maintain and organize all your investment properties. You are responsible for the accounting for your properties and this tool will make things easier. It logs all your accounts receivable and payable and at the end of each year it provides a complete report for your tax accountant or CPA. Just go to any internet search engine and enter "Property Tracker" and you'll be directed to their website, the monthly cost is about $25. (This is only a suggestion not a requirement)
Forwarding Address (Mail)
- After escrow closes notify the Post Office of your ownership of your new property. This is important because there will be correspondence in your name and it will be directed to the subject address and if it is vacant or tenant occupied it may be lost or misdirected. Do a "Change of address" with the USPS (United States Parcel Service) at your earliest convenience, you can do it "On-line" at www.usps.com
Loan Servicing Transfers
- After escrow closes you will receive bills from the loan company you applied to, quite often you will receive notice that your loan has been sold to another servicing company. Thereafter your payments will be redirected to the new company and new billing statements with the new servicing company will soon after be disbursed. Don't be alarmed this is quite common just be aware of your payment records because sometimes you can receive duplicate bills for the same month. If you made payment to the old company your payment credit will be forwarded to the new servicing company.
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