The Real Estate Encyclopedia
What Do I Do After We Come To A Binding Agreement With The Seller?
Category - Home Buying Questions - General Home Buying FAQ's

Once all the terms of the purchase contract have been agreed to and signed, your agent will fax a copy of the contract to your lender.  At this time, the lender will contact you to begin the loan approval process.  Your application for the loan must begin within the time frame indicated in the contract.  You will need to provide the lender with the necessary documentation to process you loan application.  Once you begin the process, it is critical that you refrain from purchasing any products on time (car, TV, etc.), in order to maintain the criteria necessary to be approved for the amount of the loan you need to complete the purchase. 

 

The next step will be to hire a home inspector and schedule the inspection.  This again must occur within the period established in the contract. You should have a period of time (typically 7 days to conduct the inspection and another 3 days to come to a resolution as to any repairs which must be completed.)  All these dates are driven by the binding agreement date.

 

Once the inspection was completed and buyer and seller have agreed on the repairs, the seller proceeds to complete same while the loan approval process is underway.  Should there be any delays to the loan approval, your agent will send the listing agent a notification requesting a delay or postponement to the closing date. 

 

Once you reach a binding agreement, ask your agent to provide you with a timeline, including all critical dates which must be observed, in order to maintain the contract valid. This will help you keep track of the steps you must take to meet your responsibilities. Remember that a missed date could terminate the contract and allow the seller to accept a better offer. 

 

Your agent will inform you of what you need to bring to the closing and assist you in responding and interacting with the lender. 

 

Once all conditions of the contract have been met and your loan has been approved, you will proceed to the closing. 

 
Category(s)
Home Buying Questions - Buying Legal & Closing FAQ's
Home Buying Questions - General Home Buying FAQ's
Home Selling Questions - General Home Selling FAQ's
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