Once the contract for sale of a property has been executed, (that is the contract has been signed by both parties), the contract is live and initiates a number of actions and requirements. The first of these for you as that you deliver the Option Fee to the Seller and the Earnest Money to the Title Company.
Next you need to decide whether to have an inspection done – and it is advisable you do.
A Home Inspector typically looks at the following items and provides you with a report:
• Roof & Flashings
• Siding & Trim
• Doors & Windows
• Electrical System
• Water Heater
• Plumbing System
• Air Conditioning and Heating
Other Optional Home Inspection Services are:
- Wood destroying pests
- Radon gas
- Lead base paint (homes built before 1978)
- Carbon monoxide
- Pools, spas, barns, or other external structures
- Docks and sea walls
- Underground sprinkler systems
The cost of a home inspection is determined by the size of the home being inspected. Call a home inspection company to get an accurate rate.
Sometimes the purchase of a home warranty otherwise known as a Residential Service Contract, is part of the Contract for sale of the property. If it is not purchased as part of the contract, it is strongly recommened that you purchase one from a reputable company. This protects you in the event of insurable entities not functioning once you have purchased the home and can save you from having to pay out large amounts of money from repairs that can not be foreseen – a direct result of purchasing a previously owned home.
If the home is being financed, the lender will schedule an appraisal. The appraisal is the banks determination of the value of the home and a by product is that it helps you manage the risk of the investment you are making. Be aware that if the home does not appraise, that is, the bank does not value it at the price you have offered, the bank will adjust the amount they are willing to loan on that property. If you still want to purchase the home, you will need to finance the difference which can mean a large layout of cash.
SURVEYS AND TITLE INSURANCE
The Title Company works on obtaining the survey for the property and inspects the title. They also coordinate the closing for the sale of the property.
The contract specifies the number of days you have to complete your application for your loan to purchase the property. Your lender will work closely with you in this regard. The amount of time it takes to have financing approved depends in large measure as to how quickly you provide documentation they request. Be aware that any purchases you make on credit during this period (such as a motor vehicle or credit card purchases) as well as changes in your employment or business, can still have an impact on you qualifying for the loan even though you may have been pre qualified. Rather wait until after closing if you intend to make any other purchases on credit.
Your Realtor will liaise with you as to the date of the closing. Typically the buyer and seller go into at different times to sign the final contract. The transfer of keys will be facilitated as per the contract. Once the contract has closed, you can access your new home to facilitate the provision of services.