Congratulations! Your offer was accepted!
- Open Escrow. The listing agent does this when they receive the purchase agreement, any/all addendum(s) and counter(s) signed by both parties. Buyer has three business days to deliver Good Faith Deposit to Escrow, which is typically 3% of purchase price.
- Schedule all desired home inspections (i.e. profession home inspection, termite, plumbing, electrical, etc.)
- Order Appraisal. Your lender will handle this part.
- Receive all seller disclosures ad title reports. This will give a clear picture of the condition of the home and any past repairs or improvements that have been completed. The property must have clear title, which means no liens and the seller doesn’t owe anyone money that they shouldn’t.
- Lender receives the appraisal and verifies the value of the home. If the home doesn’t appraise (Come in at value or what you offered) then this will either be negotiated between seller and buyer to come to an agreement of price or the buyer is required to come up with the difference in value. The lender will only fund up to the appraised value of the home.
Review inspection report and the seller disclosures. If there are any additional inspections that need to be scheduled we need to do it in week two. Once we review all inspections, the buyer is allowed to make certain requests to the seller to either credit or repair/replace any item that is a safety, structural, or material defect that was not apparent at the time the offer was accepted.
This is the time to make certain this property is right for you. If there is anything revealed during the inspection period that is a red flag and the seller is not willing to remedy it, then you have the right to cancel the contract pertaining to the inspection contingency.
If there are any safety, structural or material defects that you would like to request for the seller to repair, we would submit what is called a “Request for Repair”. This is another step in the negotiation process. The seller does not have to agree to do anything or can counter with their terms. If the seller agrees to your requests, in return the seller will ask for a full contingency removal. This means that in order to agree to your requests your good faith deposit will become non-refundable by removing all contingencies.
We will only remove all contingencies if we have final loan approval from the lender, the appraisal came in at value, and you feel comfortable knowing everything about the home you are purchasing.
Once we receive final loan approval, the loan documents will be sent to escrow. There may be required items that are called “conditions” that a lender will ask to get resolved prior to sending out loan documents. It is important to make sure you work efficiently on retrieving that information so nothing gets held up.
Escrow and your lender will provide you with a final number of the remaining down payment balance to wire or write a cashiers check.
You will need to schedule signing at the escrow office or with one of the lender’s mobile notaries at either your home or office. Plan accordingly because this is where a majority of the delay in escrow happens.
You will need to wire or get a cashier’s check for the remaining funds to escrow in order to close.
This is a good time to make arrangements for all utilities to be transferred or scheduled. You should also make arrangements for moving. I have a great list of preferred vendors.
Closing week! All lending conditions have been met and loan docs have been received.
Once Escrow receives the lender’s funds, they will send title down to the county to record your name on title.
When title has confirmation that your name has been recorded, they will contact escrow and myself to let us all know we have “confirmation”.
Escrow has officially closed!! CONGRATULATIONS!! I will provide you with all the keys and necessary information for the home once I receive confirmation. Due to the liability, there is no possible way to give possession of the property until I have that confirmation.