Your under contract… Congrats! Here is what comes next:
- Escrow. You will need to provide the agreed upon escrow amount to the title company that has been selected. Please reference your contract for the specific amount and the title company information. Escrow needs to be provided within 3 days of offer acceptance. If there is an issue, please contact your agent.
- Inspections. Depending on the terms of your contract your inspection time period can range. Please review your contract for the specific time period. Inspections are not required but are highly recommended! You can choose whatever inspection service you would like to work with. The costs vary depending on sq. ft. of home and what inspections you are having performed. Generally, a home inspection can cost between $300 -$400. Other inspections you may want to include are a Wind mitigation, 4 point inspection, Septic tank and a termite inspection. Please speak with the inspection company to find out rates for these inspections and others that may not be mentioned.This is the first contingency for your contract. If the inspection provides results that show defective issues with the home that you are not willing to accept you will have two options. 1. You can try to negotiate with the seller to fix the defects and 2. You can decline to continue with the contract and have your escrow returned. If you choose to accept the inspection results (with or without additional negotiation) then we will move on the next contingency.
- Appraisals. Your appraisal will be ordered thru your lender in you are financing. If you are not financing, then you are not required to have an appraisal preformed. The appraisal will be ordered right after the inspection results have been approved. The appraisal will cost between $400-$450.This is your second contingency for your contract. If the appraisal comes in below the agreed upon sales price, then you can go back to the seller and renegotiate the price. If you cannot come to terms, then once again you can cancel the contract and receive back your escrow monies.
- Survey. A current survey is required for all financed purchases. It is not required for cash deals but is highly recommended. Surveys cost between $300 -$400. There is a possibility that the seller might have one on file that could be used instead of purchasing a new one. Please speak with your agent to find out if one might be available.
- Home Owners Insurance. By this time you should already have several quotes for your home owners insurance. You will need to make your selection for insurance and have your binder at least a week prior to closing. If you are purchasing with cash insurance is not mandatory but highly recommended. Please speak with your agent if you need any insurance company suggestions.
- Clear to close. About a week before closing you will receive your final closing statement for you to approve. You will have 3 days to look over the terms and then approve the statement. The title company will provide you with your final closing statement that will outline your contract terms, mortgage rate, and all other terms of your loan. This will only occur on schedule if you have been diligently working with your lender and their team to provide necessary documents when asked for! This is the last contingency for your contract. As per the contract terms you are to receive mortgage rate up to a specified amount (please refer to your contract for that amount). If the rate goes above the amount specified, then you will have this last chance to walk away from the contract if you choose to do so with your escrow monies. If you choose to move forward and approve the closing settlement statement you will receive the clear to close!
- Wiring Closing funds. Within the last few days of the closing you will need to wire your closing funds to the title company. The title company will give you instructions on how to do this. They will also give you the amount you will need to wire.
- Final Walk thru. The day of closing (or the day before) you will do a final walk thru on the property with your agent. This is a final inspection to make sure that the property is being turned over in the condition that was expected. Please be sure to schedule this with your agent.
- Closing! Last but not least! Please make sure to bring your driver’s license, a check (for any additional monies that could be owed) and any other docs that the title company has requested.