Picture this: you’ve found the perfect home, you wrote a contract, the seller accepted– after much celebration, you stop and wonder– NOW WHAT?
You are now in the part of your transaction often referred to as Contract to Close– that is, everything that has to happen once the contract is accepted to get the property to close. When you choose The Price Group, our Hub of professionals will handle everything for you, while keeping you informed every step of the way– which is helpful, because though all transactions go through the same steps for the most part, every transaction is unique. Having skilled transaction coordinators to help you along the way will make this process much smoother.
Step One: Remove Contingencies, Conduct inspections, Resolve any issues
If there are any contingencies (most commonly, the buyer’s home may need to be under contract before they proceed so they can use the funds from their previous home to place a payment on their new home), they need to be removed. This is usually a very simple process. Inspections will verify that everything in the house is sound and in working order. Once inspections have been completed, then a repair request can be made from the buyer to the seller, asking for anything that is not in good condition to be repaired. If there is to be a plat survey, that is also done in this step.
Step Two: Obtain mortgage financing– underwriting, appraisal, survey, insurance
The financing takes off in this stage; one of the most important pieces is the appraisal. An appraisal will be done on the home to verify that the buyer is not playing more than the home is appraised for. Homeowners insurance is secured. Having a transaction coordinator to communicate with the loan officer/ mortgage broker to make sure everything is moving in a timely fashion is hugely important.
Step Three: Conduct title search, remove any encumbrances, obtain title insurance
The closing company will find the title on the house and make sure that it is ready to be transferred. Title insurance is secured.
Step Four: Obtain funds for closing
The loan officer (or mortgage officer) verifies that payment is ready to be transferred for the purchase of the home.
Step Five: Close property
Both the buyer and seller attend closing, where paperwork is signed, and payment and keys are exchanged– then the new Homeowner takes possession of their home!
Contract to Close is a critical series of steps in the purchase of your home. Be sure to select professionals, like The Price Group, to ensure your dream home is a dream come true!