THE PURCHASE OF YOUR PROPERTY
The date of acceptance is the day the contract is signed by both parties. During the due diligence period, the five business days after the acceptance date, I review and negotiate contract terms with the seller’s counsel. With buyer's approval, the final terms of the contract are agreed to.
Also during this due diligence period, I review the title, municipal, county, and state records, and association documents. The buyer's agent arranges for the professional inspection of major components of the property. The inspection is conducted over several hours, costs an estimated $400 and the report is available one day after completion. I review the inspection report with the buyer and submit a request letter to the seller. The parties then negotiate the requests and typically agree to credits in lieu of repairs, completion of the requested repairs, rejection of the requests or some combination thereof.
Within 10 business days from the acceptance date, the buyer must submit his loan application, accompanying documents and order the appraisal. This lender required appraisal is distinct from the buyer ordered inspection. This loan approval process may take 30 days. The buyer should submit the lender requested documents promptly.
Once the underwriter has approved the loan, the lender will issue a closing disclosure for the buyer's review and acceptance. The closing disclosure is a summary of the closing costs and monthly payment obligations. The closing disclosure is typically issued the week of the closing but no later than three days prior to the date of the closing. The buyer will conduct a final walk through to confirm the home is in the agreed to condition.
The closing will be conducted at the title company location nearest to the property, or as mutually agreed to by the parties, and will take 60 – 90 minutes. The buyer will submit his ID and closing funds in the form of a cashier’s check or wire to the closer. I review and explain each loan, conveyance, and title document to the buyer. The closer submits the buyer signed closing packet to the lender for review. The lender issues the final approval, the title company distributes the funds and the seller’s agent conveys the keys to the buyer. The buyer is now the owner of record and can move into his new home.