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1. The first concern you will need to address after getting the contract will be to get your loan process under way. Hopefully by the time you have a binding contract on a piece of property you will have made a decision on which lender you are going to use and provided them with your information. Ideally you would have gotten a pre-approval letter from them to submit with your offer. This tends to make the seller a little more comfortable about negotiating with you, knowing that you have the capabilities of closing the deal. In the event you have not officially made application for your loan, the contract will call for you to do so within a few days of the binding agreement date. Not complying with this time limit can put you in breach of the agreement and you could risk losing your earnest money. At the time you make your official loan application, the lender will collect a fee from you to cover the appraisal and the cost of your credit report.
2. The second item that will need your immediate attention will be to get your home inspection under way. Normally you will have around seven days to get the inspection done and provide the seller with an amendment to the contract addressing any objectionable items found in the inspectors report. This usually turns into another round of negotiations with you and the seller. The seller does not have to do anything on the amendment, but if he/she does not, then you may opt out of the contract without penalty. If you do not get your inspection and amendment done within the time limits set forth in the contract, you forfeit your right to ask for any additional repairs and may not opt out without penalty. |
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3. The first two items are the critical things to get done from a timing standpoint. It is, however, important to keep the lines of communication open with your lender and your agent. The lender is mostlikely going to need additional information from you throughout the loan process. It is important that you provide the information and documentation to them as quickly as possible. Your agent is there to help you in any way possible to insure the transaction moves along in a timely manner. You will need to be in contact with your insurance agent to get a homeowners policy effective as of the closing date. It is a good idea to put your insurance agent in touch with your lender so that the coverage is handled correctly. You will need to bring the policy and a paid receipt to the closing. It will be your responsibility within a few days of closing to do a final walk through (with the help of your agent of course) of the property to make sure any requested repairs have been done and to see that no damage has been done to the house since you placed the contract on it.
4. Finally, you will need to make arrangements to get the utilities changed over to your name. This would include gas, water, and electricity. It can save you time, money, and a headache if you get the utilities transferred into your name as opposed to allowing them to be disconnected. Your lender should let you know the amount of money you will need to bring to closing for down payment, prepaids, closing cost, etc. You will then need to go to your bank and get a cashiers check for that amount. Have it made payable to you, then you can endorse it over to the attorneys office at the closing. If the amount is a little high, the attorney will write you a check back for the difference. If it's a little low, they will accept a personal check for the difference. |
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