Schedule a Home Inspection.
A home inspection is done within 7 business days of your offer being accepted. We will suggest Home Inspectors we have had positive experiences with. A home inspection is your opportunity to walk through the home with the home inspector and your Realtor to learn how things work in the house, and if there are any building, structural, environmental healthy and safety concerns. The inspector will check the plumbing, electrical, structure, for pests, mold, radon and your septic and well if applicable. Don’t be discouraged by the list your inspector provides you with, there is something to find in every home. No home is perfect and once the inspection is complete, we will review the list of items and approach the seller to re-negotiate for a credit, repair or lowered purchase price.
Note – In the current market, home inspections are mostly for information purposes only, meaning you do not have the opportunity to re-negotiate, otherwise the seller can move on to the next buyer.
Sign Contracts with your Attorney
You will sign contracts with your Attorney, typically within 10 business days of your offer being accepted. The contract is an agreement between the buyer and seller of real property (the house) that wish to pass title once certain conditions have been met. We will send your Attorney a binder packet containing your offer, signed disclosures and pre-approval letter to ensure the contract from the Sellers attorney corresponds with what we had originally agreed on.
Continue submitting all necessary documents to your Mortgage Broker.
You have 21 days to receive full mortgage approval so time is of the essence.
Your Lender will Schedule a Home Appraisal
Your Mortgage Lender will order the Bank Appraisal once they receive the signed contract. Time is of the essence here so review & sign contracts asap. A home appraisal is completed by a third party and will evaluate how your new home compares to others based on similar attributes- condition, size, price, location, etc. The appraisal determines what the Mortgage Company deems a fair value for your desired home and what they will lend on. An appraisal comes back within a week of a Realtor meeting the Appraiser at the property.
In your typical market a home must appraise at or above purchase price. Today, buyers are waiving appraisal contingencies or using an appraisal gap program. Ask us and your lender about different programs to help ensure you still get the house!
Receive Mortgage Commitment
Receiving full mortgage commitment is crucial to closing on your new home. Once your lender has reviewed and received all documents, from your personal financial information, income and employment verification to contract and appraisal documents pertaining to the home you wish to purchase they will issue you a Mortgage Commitment. This means you can lift your mortgage contingency (typically written 21 business days from accepted offer in your contract) and you are one step closer to closing! Once you Attorney lifts your mortgage contingency, you are essentially locked in to purchase this home, or risk losing your deposit money.
At least 3 days prior to closing your lender will issue you a “clear to close” and send you the closing disclosure (CD) to sign. Now we wait for closing day to arrive.