The Home Buying Process from Contract to Closing
1. We will search together for the best property to fit your needs.
2. When you find the home that you want, we will write up an offer on that home. The offer will contain the terms you wish to present to the seller, i.e. price, closing date, etc.
3. I will deliver the signed offer, along with your option check, to the listing agent. A copy of your earnest money check will accompany the offer, but the original earnest money check will remain with me in my file until your offer is accepted.
4. The listing agent will prepare a "Net Sheet" using the price in your offer and other important facts (if you ask for the seller to pay any of your closing costs, date to close, etc.) The listing agent will present this offer to the seller and discuss the terms with their client.
5. The seller will make a decision based on your offer; if they can accept it as written, or if they need to make a counter-offer.
6. If they change anything on the offer, they will initial those changes and the counter-offer will be returned to me.
7. I will call you and go over any changes to your offer. We will discuss the changes and decide if you can accept them or if you need to counter-offer.
9. When your offer is accepted and agreed to by the seller and the seller has signed and initialed all changes, the contract will come back to you for your initials to the changes.
10. At this point, you have an executed contract. All dates in the contract hinge upon this date. Your option period begins the day after the executed date.
11. The seller will sign for the option money when the contract terms are agreed upon.
12. When the executed contract has been signed by all parties, I will take the earnest money to the title company to be receipted.
13. This fully executed contract should then be delivered to your lender so they can begin processing your loan.
14. During the option period, (which is the time period when a buyer has the unrestricted right to terminate the contract for any reason) all inspections should be conducted, i.e. licensed home inspection, termite inspection, septic inspection if applicable, structural inspection if required, etc. You should also contact insurance agents to get quotes on homeowners insurance. This is done during the option period just in case the home under contract has previous water claims, or other claims, that would make the premium so high that you would not want to purchase the home. If you learn this during the option period, you can terminate the contract and your earnest money is returned to you.
15. After the home inspection, if you want to ask the seller to pay for any repairs, you will need to note those on an Amendment form and I will take that form, along with a copy of the inspection report, to the listing agent. The listing agent will go over it with the seller and the seller will decide what they are willing to do in the way of repairs and/or treatment. If you do not have an answer from the seller about the repair request before the option period deadline, the only alternative is for you to terminate the contract (or ask to have the option period extended) or you will have to accept the house "as is" with no repairs.
16. Once you have passed the option deadline and repairs are agreed upon, the lender will order the appraisal. They don't order it during the option period because they don't know if the buyer will opt out. They don't want to spend your money unless they know you have a binding contract.
17. If there are any repairs to complete, they need to be finished prior to closing.
18. The lender will then complete processing your loan and get it ready for closing.
19. On the day of closing, we will do a "walk-through" to see the house one more time prior to closing. The purpose of the walk-through is to be sure nothing has changed since you made the offer, i.e. damage from moving out, etc.
20. You and the sellers will meet at the title company with your respective REALTORS to sign papers at closing.
21. You will need to bring a Cashier's Check to closing for your down payment and closing costs. The cashier's check will be made payable to the title company. The title company will also need to see your driver's license. Your lender will send the loan funds to closing. After all papers are signed and some are faxed back to the lender for approval, funding authorization will be given to the title company escrow officer by your lender and the closing will be complete. The seller will give you the keys, garage door openers, etc. and the house is yours!
Congratulations!
Kelly, Realtors Kelly, Realtors
1229 N. Valley Mills Dr. 1229 N. Valley Mills Dr.
Waco, TX 76710 Waco, TX 76710
254-420-2332 254-717-2738
tdickenson@kellyrealtors.com ddickenson@kellyrealtors.com
