Once Contracts are Signed, here are the common steps to executing your contract of sale properly:
- Fully signed contracts (signed by both parties) & 1st good faith deposit if necessary.
- Attorney approval for both purchaser & seller. This will be completed by your attorney within a few business days of receiving the contract of sale.
- Home Inspection – This is immediately after step two. Usually performed within 7 days after execution of signed contract. Cost is approximately $300 by a licensed home inspector (radon testing-add approx. $125). These fees are due at the time of inspection. Note that home inspectors are usually very busy & a few days behind in their schedule. It is a good idea to call to set up home inspection right after step one but to make sure that the actual inspection occurs after both attorneys have approved of the contract.
- Full deposit due at this time.
- Apply for your mortgage with your lender – (application fee will be due at this time).
- Receive from your bank a full written commitment. This usually takes the bank 20-30 days to complete for you.
- Arrange & pay for 1 year home owner’s insurance. Also, the same for flood insurance if required by your lender.
- Closing – Usually within 60 days after bank application. Your contract will have a target closing date. At this point your attorney will tell you exactly how much cash you will need for closing (to be paid in certified funds.)
- Just prior to closing you do a “final walk thru” through the home, It should be in the same condition as it was when you first saw it.
- When notified of the exact closing date – call the electric, gas & water company’s for a “turn on” or transfer of the utilities.
If you have any questions, I am always here to help. I can supply you with the information & materials you need.