Under Contract! Congratulations!
A whole new process now begins as we are officially under contract! Although we have this guide as a snapshot of a typical real estate transaction, of course EVERY transaction is different, and every Buyer & Seller have multiple variations of relocation, lending requirements, etc...but one thing that is the same is that a real estate transaction can sometimes get emotional & complicated. So please, at any time you have a question or just want some reassurance of where your transaction is at, ALWAYS feel welcome to contact your K E N A R R I Agent even if you literally just got off the phone with them. We're here to help guide you through the process and we want you to feel as comfortable as possible along the way.
Pick Your Attorney or Closing Agent
You will need to hire an attorney or closing agent to finalize the transfer of the property. If you don't have anyone in mind, that's ok! We can give you suggestions based on your transaction, budget and location. But don't worry. You literally just have to give us their name, and we will contact them for you, give them a copy of your contract and keep them posted on the status of your transaction. Don't be alarmed if you don't hear from them until closer to the end of the transaction, you have a lot to do before your attorney really need to step in.
NY Transactions: You should hear from your attorney during the attorney review period.
DON'T
Your lender issued you a pre-approval based on your current income, credit & and debt. While you are under contract *Don't quit your job or change employers . *Don't apply for new credit. No new cars, no new credit cards, no other loans etc. If you alter your credit or your income, it can make you no longer eligible for the mortgage.
Movers/Storage/Drivers License
Start looking for movers and storage options right away. Many companies require you to book in advance. Please keep in mind, the transaction does still have many steps to cross. Dates may change, and yes sometimes transactions fall through so use your discretion when it comes time to put down any deposits.
Be sure that your drivers license address matches the address you listed on the loan application.
Inspections
If you elected inspections, you will need to complete them during the time period stated on your agreement. Inspectors and/or contractors will be scheduled and as a buyer you may attend. Please keep in mind that inspections are not the time to invite guest to see the property. During the inspection time period, you my find items that you are not satisfied with and may ask for a repair, compensation, a credit or even a termination. This is a negotiation period to come into an agreement to keep the transaction together.
Get Insurance
Your lender will be asking you for an Insurance Binder. Be sure to give yourself time to call around to get insurance estimates. Keep in mind, often insurance companies need time to visit the property to assess it for insurability.
Appraisal
The lender orders the appraisal. Normally the appraisal isn't ordered until you have provided the major documents requested by the lender. So it's usually a good sign that we are moving forward and you're still financially qualified as stated in your pre-approval. HOWEVER some lenders order the appraisal immediately regardless of the stage of your documentation. Depending on the loan type, depends on what the appraiser may need to include in their report. FHA/USDA/VA loans the appraiser is looking for safety hazards such as peeling paint, handrails on steps, GFCI Outlets etc. All loan types they are also looking for the value stated in your agreement. If for some reason you do not appraise or if other repairs are required this may be another negotiation period. If an appraisal does require a repair, the appraiser must return to verify the repair has been completed.
Mortgage Commitment
BOOM! You are officially qualified to purchase the property! Although we have mortgage commitment there still may be contingency's and those should be listed on the mortgage commitment. If everything else above has been done...then this is the time to get pretty serious about preparing to move your personal items.
Clear to Close
Clear to close means the lender has everything they need to close the transaction on their end! Sometimes the attorney has some finalizations but most of the time they work together quite simultaneously. This is when the official closing date, time & location is scheduled. Closing could be scheduled as soon as 3 days after receiving the clear to close!
Call Utility Companies
Contact any utility companies or other service companies and make them aware that you are purchasing a property and the closing date. Be prepared that sometimes the utility companies need to do inspections or credit applications to take over service. The seller usually has the utilities scheduled to be turned off the day after closing.
Final Walkthrough
This is an opportunity for you to make a final inspection of the property. You are looking for 2 things. Any new damages that occurred during the transaction you were not aware of and that everything is still present that was suppose to stay in your agreement (lighting, appliances, pellet stoves etc.) This can be done a day or two in advance down to the last hour before closing.
Closing Day!!!
Hip Hip Hooray! It's Closing Day and you made it! Traditional closings with the buyer & seller at the closing table are not as common as they use to be. The Sellers attorney/closing agent may have asked them to pre sign their closing documents in advance. This is the day that you officially close and take possession of the property. Make sure you bring your drivers license & an official bank check for any sums that need paid at closing.
THANK YOU!
Thank you for trusting K E N A R R I real estate division to help guide you through your real estate transaction!
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