Things to know and do before you close escrow on your new Santa Clarita home.

You’ve found the perfect Santa Clarita home, signed a purchase agreement and started escrow… now what? What happens between now and the date you are handed the keys to your new home? Use this handy homebuyer’s checklist to make sure that you don’t miss any important dates or activities while your home is in escrow.

Getting Final Approval for Your Loan

You should have had at least a pre-qualification letter from your lender prior to signing a purchase agreement for your new home. The next steps for your lending include finalizing your loan package (if it hasn’t been done already) and having the lender submit your loan to underwriting for full approval.

Whether you’ve barely qualified or have room to spare, it’s best to refrain from any large credit purchases or credit card run-ups before you close escrow. That includes cars, furniture and appliances. It’s possible that the lender will pull your credit report one more time before obtaining the final authorization of your loan, and an increase in your debt ratio could mean that the loan won’t happen.

Just to be sure that nothing comes up on your credit report that would make them re-evaluate your loan, don’t make any large credit purchases until after you close escrow. In fact, don’t make any credit purchases at all until you close escrow!

Dates to Watch and Activities to Complete

New Construction: First Walk-Through

If you’re buying new construction Your first walk-through will likely be the week before you are scheduled to close escrow. This is the most important walk-through, and will be your only real opportunity to get cosmetic defects corrected. Set aside at least two hours for this. You’ll be shown how to operate all of the appliances, the thermostat and other important features of your new home.

About a week after this first walk-through is the final walk-through, where you’ll make sure that all requested corrections have been taken care of. Once you move in, it’s unlikely that any cosmetic issues will be corrected by the builder.

Resale Homes: Physical Inspections

If you’re buying a resale home, then you’ll need to have a physical inspection performed by a qualified inspector within the first 10 days after your offer is accepted by the seller. You’ll use the inspectors report to prepare a Request for Repairs for any items that you feel the sellers should correct before the close of escrow. Click here to learn more about the home inspection process.

Contingency Removals

If you’re buying new construction, your only contingency will be the loan contingency. Be aware that they are NOT promising to get you the loan that they initially approved you for. This contingency is considered to be satisfied if they can get you qualifed for ANY loan.

For resale homes, the standard California Purchase Agreement allows for a 17-day contingency period. Unless this is changed by other agreements, such as counter offers or relocation amendments, you’ll have a full 17 days to review all disclosures provided by the sellers and have your physical inspections performed. Unless stated otherwise in your agreement with the seller, contingencies must be removed in writing for resale homes.

Deposit of Down Payment Funds into Escrow

Your down payment funds are required to be in escrow at least 3 days before the scheduled close date, usually at the same time that you sign the loan documents. Be prepared to either wire funds to escrow or bring them a cashier’s check.

You’ll either meet with a notary to sign the loan documents, or they’ll send a mobile notary to you. If any of your deposit funds are remaining after they are applied towards your down payment, closing costs, prepaid property taxes and other prorations, escrow will issue you a refund check after the close of escrow. 

A qualified Realtor should be in touch with escrow on a regular basis, and will be sure to get an estimated closing statement as soon as it is available to check for any errors.

Escrows generally don’t close on a Monday, so your close date will be Tuesday-Friday.

Utility Services

Request your utilities (water, gas, electric, trash, cable/dish, internet, phone) around the time you sign your loan documents. Give them the estimated closing date as the date to start your service. Some utilities may take days to do this initial start-up of services, so don’t wait until the last minute to request service.

Your Realtor should be able to provide you with a list of utility companies and their contact information. If you live in the Santa Clarita area, most likely you’ll have Valencia, Newhall or Castaic Water, SoCal Edison, and SoCal Gas, with your choice for the other services.

Insurance

Condo and townhome buyers: Be sure to get insurance on the contents of your home from your insurance agent. Property (building) insurance will be covered as part of your HOA dues.

Single family home buyers: A full year’s homeowner’s insurance premium will be required to be paid through escrow. Be sure to shop for homeowner’s insurance early on, and have the insurance company communicate with your escrow company to make sure this is handled correctly.

Packing Boxes and Moving Vans

It’s best to arrange for movers well in advance, since often they get booked up. This is especially true for weekends or end-of-month moves. Don’t plan on having movers the day you close escrow, unless you’re having them arrive at your new home in the early evening. It’s safer to have them show up the following day, just to make sure you have your keys. If you’ve allowed the sellers extra days to move out, then alter your moving plans accordingly.

It’s best to be fully packed and ready to go before the movers arrive, or it will cost you (a lot) extra. Need moving boxes? Click here to order and have them delivered directly to your door!

Congratulations! You’re a New Homeowner!

Keys will be delivered to you after confirmation of closing is received on the day escrow closes, unless other arrangements were made on your purchase agreement. Typically confirmations are received between 3-6pm, but it could be earlier.

Questions?

If you’re a prospective homebuyer or you’re working with Santa Clarita Realtor Linda Slocum for the purchase of your home, feel free to contact Linda at 661.670.0349 or email her at Linda@SantaClaritaRealEstateBlog.com.

If you’re working with another Realtor, then that person should be able to answer all of your questions, so please contact them directly.

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