How to buy a home in Maine

Behind The Scenes...

WHAT HAPPENS NEXT?

Now that you have decided to buy your home, what happens between now and the time you legally own the home? A Title Company may handle some of the following items. NOTE: in different parts of the country, REALTORS, attorneys, lenders, escrow companies and other persons who are independent of, title companies perform some or all of these functions.

Earnest Money – (or alternatively a good-faith deposit) will be deposited and held in an escrow account by the real estate broker, agreed upon through the Purchase and Sale Agreement. Once you submit the loan application, it is usually subject to a credit check, an appraisal, and sometimes, a survey of the property.
Tax Check – What taxes are owed on the property? The Title Company contacts the various assessor-collectors to see if taxes are current or due.
Title Search – Copies of documents are gathered from various public records: deeds, deeds of trust, various assessments and matters of probate, heirs, divorce, and bankruptcy are addressed.
Examination – Verification of the legal owner and debts owed.
Document Preparation – Appropriate forms are prepared for conveyance and settlement.
Settlement – An Escrow Officer oversees the closing of the transaction: seller signs the deed, you sign a new mortgage, the old loan is paid off and the new loan is established. Seller, Realtors, attorneys, surveyors, Title Company, and other service providers for the parties are paid. Title insurance policies will then be issued to you and your lender.
Title Insurance - There are two types of title insurance:
- Coverage that protects the lender for the amount of the mortgage
- Coverage that protects your equity in the property

Both you and your lender will want the security offered by title insurance. Why?
Title agents search public records to determine who has owned any piece of property, but these records may not reflect irregularities that are almost impossible to find. Here are some examples: an unauthorized seller forges the deed to the property; an unknown, but rightful heir to the property shows up after the sale to claim ownership; conflicts arise over a will from a deceased owner; or a land survey showing the boundaries of your property is incorrect.

For a one-time charge at closing, title insurance policy will safeguard you against problems including those events, which even an exhaustive search will not reveal.

Contract checklist:

Order Building Inspection
Order Any Other Negotiated Inspections
Notify Landlord
Order Insurance Policy
Transfer Utilities
Order Telephone Service
Schedule Final Walk Through
Schedule appointment with movers
Make extra keys/change locks
Order cable TV service
Order new checks
Change driver’s license/credit cards
Contact the Postal Service for a change of address

Back... ...Continue

Closing 101

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Questions?...Contact us

Prepare for it

Closing day marks the end of your home buying process and the beginning of your new life! To make sure your closing goes smoothly, you should bring the following:

A certified check for closing costs and down payment. Make the check payable to yourself; you will then endorse it to the title company at closing

An insurance binder and paid receipt

Photo IDs

Social security numbers

Addresses for the past 10 years

Own it

Transfer of title moves ownership of the property from the seller to you. The two events that make this happen are:

Delivery of the buyers funds - This is the check or wire funds provided by your lender in the amount of the loan
Delivery of the deed - A deed is the document that transfers ownership of real estate. The deed names the seller and buyer, gives a legal description of the property, and contains the notarized signatures of the seller and witnesses.

At the end of closing, the deed will be taken and recorded at the county clerk’s office. It will be sent to you after processing.