Exciting news!
You’ve successfully secured your dream home under contract and are eagerly anticipating moving in soon.
However, there are several steps that must be completed before you can officially take possession. These include a home inspection, appraisal, handling financing paperwork, addressing contingencies, and meeting other closing requirements.
Here’s what you can expect in the upcoming weeks:
Due Diligence
Now that the home is exclusively yours to negotiate with the seller, you have a due diligence period. This allows you to thoroughly assess the property to ensure it meets your expectations and financial capabilities. Typically, this period lasts 45 to 60 days, providing ample time to finalize financing and ensure the home’s condition meets your standards.
Now that the home is exclusively yours to negotiate with the seller, you have a due diligence period. This allows you to thoroughly assess the property to ensure it meets your expectations and financial capabilities. Typically, this period lasts 45 to 60 days, providing ample time to finalize financing and ensure the home’s condition meets your standards.
Home Inspection
Most buyers opt for a certified home inspection within 7 to 14 days of going under contract. Inspections cover the main structure, pests, water quality (for homes with wells), septic systems (if not connected to public sewer), and radon levels. If any issues arise during inspection, you have the option to negotiate repairs or financial compensation with the seller, or even withdraw from the contract if the problems are significant.
Most buyers opt for a certified home inspection within 7 to 14 days of going under contract. Inspections cover the main structure, pests, water quality (for homes with wells), septic systems (if not connected to public sewer), and radon levels. If any issues arise during inspection, you have the option to negotiate repairs or financial compensation with the seller, or even withdraw from the contract if the problems are significant.
Financing Contingency
If part of your agreement includes a financing contingency, your ability to purchase the home hinges on securing a loan from a lender. This typically involves providing financial documentation and ensuring the home appraises at or above the purchase price. This contingency usually spans up to 30 days. If financing falls through or the appraisal doesn’t meet expectations, you can exit the contract without penalty.
If part of your agreement includes a financing contingency, your ability to purchase the home hinges on securing a loan from a lender. This typically involves providing financial documentation and ensuring the home appraises at or above the purchase price. This contingency usually spans up to 30 days. If financing falls through or the appraisal doesn’t meet expectations, you can exit the contract without penalty.
Ready to Close
Assuming all contingencies have been met satisfactorily, you’ll prepare for closing. This involves arranging for utilities to be transferred into your name on the closing date and updating your address with relevant parties. Before finalizing the deal, conduct a final walkthrough to ensure the property’s condition hasn’t changed since your inspection.
Assuming all contingencies have been met satisfactorily, you’ll prepare for closing. This involves arranging for utilities to be transferred into your name on the closing date and updating your address with relevant parties. Before finalizing the deal, conduct a final walkthrough to ensure the property’s condition hasn’t changed since your inspection.
Navigating the home-buying process can be complex, so it’s wise to work closely with a knowledgeable real estate professional. Their guidance will help streamline the process and ensure you meet critical deadlines, minimizing potential setbacks and financial risks.
