Once buyer and seller come to terms on the standard issues of a contract (price, closing date, concessions, warranties, etc.) it’s time to clear any outstanding contingencies and move into escrow (In other words, wait on the lender to finish underwriting your loan)…
- Must typically be completed within 10 calendar days of offer acceptance. If you need a reference for a home inspector feel free to ask.
- You have the right to many and various inspections. Including but not limited to: a general home inspection, WDO (wood destroying organism), lead based paint, mold/air quality, radon, structural engineering, square footage verifications, and specialized inspections for pools, chimneys, and the like. Remember, these inspections will have to be paid for by you regardless of whether the deal closes or not.
- The outcome of the inspection will guide the rest of the transaction. Upon receipt of the inspection report you have three options…
- Accept the property in AS-IS condition. Drop the inspection contingency and move towards closing.
- Cancel the contract with a refund of all earnest monies.
- Provide the seller with a list of specified issues to be repaired/resolved. The seller doesn’t have to agree – they can negotiate. But if they refuse, the contract is technically void. The requested repairs must be actual functional defects and not aesthetic issues. Paragraph 14 of the NEFAR Purchase & Sale Agreement covers this in detail.
Lender Required Activities:
Per the contract, you have agreed to follow a very specific timeline with regard to lifting your financing contingency.
- Make formal loan application within 5 days of binding agreement date.
- Give lender approval to order the appraisal. It’s not unusual for the lender to collect payment for the appraisal before closing.
- Choose your home owners insurance provider and convey this information to your lender. I can point you in the right direction if you need a reference for an insurance company.
- Comply with all lender-required demands (i.e. proof of employment, last two years tax returns, signing disclaimers, bank statements, curing any credit discrepancies, etc.)
- Pay any lender-required upfront fees. Many lenders require that you pay for your credit report and appraisal out of pocket.
- Unless otherwise stated, you have 45 days to get approval for your loan.
Buyer Due Diligence:
- Are there items you’d like clarity on? Now is the time to do your research on things like HOA (home owners association) documentation, waste/water supply, crime rates, school zones, flood zones, utility costs, purpose zoning, and the like.
- Stay in contact with the agreed upon title company. Do they have the documents they need?
- Have we received a clear WDO Report? If you are getting a VA loan, this is typically ordered and paid for by the seller.
- Call all utility companies to make sure the bills are transferred into your name by the closing date. (JEA or St Johns County)
- Schedule final walk-through to verify repairs the day before or the day of closing,
- Schedule closing time and location with title company.
- Make sure to bring proper identification to the closing (I.E. State issued driver’s license or passport).
- At closing you must bring the outstanding balance in the form of a Cashier’s Check.
- Jeff’s Preferred Vendors
Originally posted 2013-06-12 09:55:49.