I have a contract…now what?!
Day 0
Offer Accepted – This is when both Buyer and Seller enter into a legally binding agreement. You’ve got a deal!
Day 1
Escrow Opened – The earnest deposit check (made payable to the title company) is sent to the title company along with a copy of the fully signed contract. Title Commitment is ordered.
Days 1-10
Due Diligence & Inspections – The due diligence period begins the day AFTER the contract has been signed by all parties. It lasts 10 days OR until the Buyer Inspection Notice & Seller’s Response (BINSR) form has been submitted to the Seller. This is the time to learn as much about the property as you can.
- Inspections
- Confirm your ability to obtain insurance and insurability of the property
- Title Commitment received, reviewed and approved by Buyer within 5 days of receipt
- Review the Residential Seller’s Property Disclosure Statement and Insurance Claims Report
Appraisal – The appraisal is ordered by the Lender. The property must appraise for at least the purchase price or the Buyer has 5 days to cancel the contract. VA loans have 14 days for appraisals.
Days 10-25
Loan Processing – Completion of loan processing, underwriting, (the Buyer must promptly provide the lender with all additional documentation required) and then preparing the loan documents for signatures. Three days prior to closing, loan documents are to be at the title company and signed.
Day 25
Signing At Title Company – Buyers are to sign loan documents 3 days prior to the scheduled close of escrow date. Buyer deposits required funds, brought in by either cashier’s check or wire transfer.
Days 25-30
Funding – Loan Documents are returned to the Lender for review, Title Company ensures all conditions are met and then the Lender sends funds to Escrow.
Day 30
Recording – Congratulations! You are a homeowner!! The title company records the sale with the appropriate county and Escrow is closed! After recording is confirmed, the Buyer receives keys from their REALTOR®.
