Buyer is Under Contract – Now What Happens?
YOU ARE AN UNDER CONTRACT BUYER – NOW WHAT?
1. Within 7 days of your offer being accepted you need to have your home inspection if you choose to have one. We strongly suggest you do. In advance of your inspection you should also have the Well and Septic Tank tested if you so choose and it’s applicable. Your Buyer Specialist will make recommendations on which inspectors have served our clients best in the past. Remember you have to pay for these inspections at the time of the inspection. Our team’s Client Care Coordinator will assist you in scheduling the inspections. If this is a bank owned property, check with your buyer specialist to see if utilities are on. If they are not on, you might have turned on in your name if the bank is not willing to do so. This is not unusual.
2. If you are satisfied with the results of the inspection, we will notify your lender and tell them to order your appraisal if he/she has not done so already.
3. It usually takes 3-5 days from the date your lender orders the appraisal for the appraiser to schedule and conduct the appraisal.
4. The appraisal takes 3-10 days for the results to be returned to the Lender and for us to know the number.
5. During this time your lender should have all of the required documents. It’s best to check in with your lender to confirm he/she has everything they need.
6. You should call a local insurance company to get homeowners insurance quotes at this time. It’s best you email your insurance agent a copy of the MLS Listing of the home you are purchasing. If you don’t have one, ask our Client Care Coordinator for a copy of the MLS Listing. This will prevent your insurance agent from asking you a million questions about the home. Tell your insurance agent to call our Client Care Coordinator if they have any specific questions about the home.
7. When you’re about 5 days away from closing you should call the utility companies and ask to “Transfer Utilities” for the date of your closing. You may not be able to transfer / turn on water until after you have closed on your home. Ask our Client Care Coordinator for list of the contact numbers of the utility companies.
8. You should do a “Final Walk Through” of the property you are purchasing within 24 hours before closing to confirm the property is in the same condition that it was in when you agreed to purchase the property and that all inspection required repairs have been completed.
9. On the day of closing, all signers will need to bring their driver’s license or Passport and a Cashiers Check in the amount you are required to bring to closing. Your lender will be the one to give you the amount you will need to bring to closing. The Cashiers Check should be made out to the closing attorney. This is very important.
10. If your name is on the purchase agreement, you will need to be present at the closing or have signed a power of attorney for someone to sign on your behalf. If you are doing a power of attorney, you will need to notify our Client Care Coordinator and your lender at least seven days prior to closing.
11. The day before closing or sometime the day of closing, you should communicate with your lender because they will need to tell you exactly how much you money need to bring to closing. Don’t be alarmed or upset if you receive this number the day of closing or even an hour or two before closing. This is very common. For whatever reason, the banks often wait until the last minute to get their paperwork to the closing attorney and to their gather final numbers. It’s not your lenders fault; there is a lot of coordination in the final hours between Closing Attorney and lender preparing all of the documentation and Closing Disclosure Statement.
12. Closings are typically done Monday through Friday between 9:00 a.m. and 5:00 P.M. The closing should around 1 hour depending on if everyone is on time and whether or not the loan funds right away. We recommend that you plan at least a 3 hour window for closing in case there are any unforeseen delays. If this is a late closing say 3:00 or later, there is a very good chance it will not fund until the next day. If this happens you may NOT get keys at that time and will have to wait until the loan funds and the Closing Attorney receives the funds.
1. If I find items during the inspection that are broken or need to be repaired can I ask the seller to repair or replace?
Yes, you can ask for the items to be repaired, replaced or you can ask for a credit towards closing costs or a price reduction for an estimated amount and then you will assume the repairs yourself. Remember that the during the inspection you are primarily looking for repairs that affect the homes mechanical systems, the structural integrity, and items that affect health and safety.
2. If my loan is denied by the lender will I get my earnest money deposit back?
Yes you will, assuming your purchase agreement has a mortgage contingency. Most do.
3. What if the home doesn’t appraise for what we offered the Seller?
If the home doesn’t appraise, we will go back to the negotiating table and either have the Seller reduce the price to the appraised value or we will ask for you to be released from the contract and your earnest money returned.
4. Can I pay over the appraised value if I want to?
Yes. However, anything you pay above the appraised value is that much more that you will have to bring to closing.
5. How do I contact the Mega Agent Real Estate Team’s Client Care Coordinator?
You can call our Client Care Coordinator at (205) 267-1520 or email her at Sharron@MegaAgents.com.