Timeline

A friend informs me that it takes 45 days (on average) to close on a home. I am guessing the start date to this 45 day timeclock is the date at which the earnest money agreement is signed. That date for us was June 10th, 2003. Here is a timeline of our process.

10/11 March 03 - Attended the AHFC Home Choice Seminar - what a great time!

12 May 03 - Lee O'Hare, Century21 Gold Rush agent, starts faxing us MLS data sheets on homes in the greater Fairbanks area.

21 May 03 - Lee faxes us MLS data sheet on 776 8th Avenue.

23 May 03 - We visit 776 8th Avenue for the first time.

30 May 03 - Initial offer made on the house to Seller.

3 June 03 - Counter offer received from Seller.

3 June 03 - Pre-Q visit to AlaskaUSA Mortgage Company - 90% Letter received (for way more than we need!)

4 June 03 - We make a counter offer to the Seller.

6 June 03 - Seller counters our counter offer. So that's 1 offer and 3 counter offers. The Seller's counter offer is terrible: part of the Seller's new counter offer is explicit wording that we, the Buyers, can not take out an FHA loan for the house. Norma and I decide to wait the weekend before asking Lee to end the negotiations - we had decided to walk away from the deal.

9 June 03 - The Seller changes his mind and removes the "no FHA" wording from the current counter offer. This changes everything.

10 June 03 - Norma and I accept the Seller's counter offer. The Earnest Money Agreement (a legally binding contract) is signed and the 45-day timeclock starts.

11 June 03 - Megan's Law gives us 24 hours to back out of the deal with our earnest money intact if we find a sex offender in the neighborhood. I went online to the state's sex offender online registry and found several. We did not back out of the agreement.

17 June 03 - Terry Duszynski, ICBO Home Inspector, inspects the home.

18 June 03 - Application for mortgage loan completed with AlaskaUSA Mortgage Company.

19 June 03 - Receive the home inspector's report. The report lists out several electrical needs, a few plumbing needs, requires a flame retardant coating over the insulation in the ceiling, and a short list of requirements to make the house conform to FHA regs.

19 June 03 - Sign an IRS 1039 form that seeks to ensure that we understand that the Seller is selling us property that he used as rental income. Without our signature, the Seller can not exclude the sale of the house from capital gains tax when he uses the proceeds to buy another rental unit (which he plans to do).

20 June 03 - The Seller verbally accepts the home inspector's report.

23 June 03 - The appraisal is ordered.

25 June 03 - Homeowner's insurance quote requested from State Farm.

7 July 03 - Electrical work on the house is complete.

9 July 03 - Homeowner's insurance quote received from State Farm.

11 July 03 - Checking in with the creditor informs us that appraisals are taking 3 and half weeks to run from the moment that they are ordered. Thus we are likely to receive our appraisal next week.

17 July 03 - Visit with a tax advisor to make plans for renting out the little cabin and to get advice on 15- vs. 30-year mortgages with respect to taxes. This was a very worthwhile visit.

21 July 03 - Receive word that the repairs are complete. The house is up to FHA code. The property now awaits re-inspection by the home inspector.

17-22 July 03 - Appraisal of the property.

22 July 03 - Interest rate locked: 5.75% Taxable FHA AHFC First-Time Homebuyer's. Rates have been slowly but steadily rising. 3 weeks ago we could have locked at 5.385% taxable. But at that time we didn't know how much longer it would take. We got a good rate - hey, it's under 6%!

24 July 03 - The agreed upon selling price makes appraisal.

28 July 03 - Loan package submitted to HUD/FHA.

29 July 03 - Home re-inspected by Terry Duzynski.

31 July 03 - Earnest Money Agreement document extension signed extending the closing date to August 11th.

6 August 03 - Homeowner's insurance policy secured through agent Vern Carlson of State Farm.

8 August 03 - Word from Lee received: we are ON for Monday at 4 for closing. I made several calls aimed at turning utilities over into our names.

10 August 03 - Final walk through. Everything in the house is set.

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