The Process, Step-by-Step
Once your offer is accepted, the transaction moves into a stage where deadlines, documentation, inspections, financing, and other requirements must be carefully managed.
The Initial Agreement and Deposit
The purchase agreement establishes the terms of the transaction between the buyer and seller. From this point forward, keeping accurate records and meeting deadlines becomes especially important.
Keep written records. Verbal conversations can lead to misunderstandings, so agreements, counteroffers, and addendums should be documented in writing. Jamie will assist with the purchase paperwork and make sure you receive copies of the documents involved.
Stick to the schedule. Your purchase agreement will establish deadlines for various stages of the transaction. Meeting those deadlines helps keep the process moving and reduces the risk of missing an important contractual requirement. Jamie will keep you informed about upcoming steps so you know what to expect.
The Closing Agent
A title company or attorney may serve as the closing agent. The closing agent holds the deposit in escrow and researches the property’s recorded history to identify title issues and other matters that could affect the transaction.
Properties may also have recorded restrictions, easements, or encroachments that affect how the property can be used. These details are important to understand before completing the purchase.
How to Hold Title
The way you hold title can have legal, estate, and tax implications. Consider speaking with an attorney or tax advisor about which option is appropriate for your circumstances.
Inspections
After your offer is accepted, you’ll have the opportunity to have the property inspected within the timeframe established by the purchase agreement.
Depending on the property, you may also choose to use inspectors who specialize in areas such as roofing, HVAC, or structural components. Commercial properties may require additional environmental review for lending purposes.
Jamie can recommend experienced inspectors to help you evaluate the property.
Inspection results may lead to different outcomes. If the property and other requirements meet your expectations, the transaction can continue toward closing. If significant concerns arise, you may have an opportunity to request changes to the terms of the agreement, depending on the contract and applicable contingencies.
Appraisal and Lending
Stay in close communication with your lender throughout the financing process. Your lender will let you know when additional documentation is needed and will provide updates as your loan moves toward approval and funding.
When financing is involved, the lender may require an appraisal to help determine the property’s value. The appraisal considers factors such as the property’s size, construction, and recent comparable sales, among other relevant factors.
As you approach closing, check with your lender to confirm that your financing remains on track and that any outstanding requirements have been addressed.
Association Approval
If the property requires association approval, request the association’s rules, regulations, and other relevant documents as soon as you have an effective purchase agreement.
Submit required applications and fees by the appropriate deadlines, and make sure all requested information is complete. Some associations may require an interview or approval before you can move into the property.
Property Insurance
If you’re obtaining a mortgage, your lender will generally require property insurance. Coverage requirements can vary based on the lender and property.
It’s worth comparing insurance options and discussing available discounts with an insurance professional. Factors such as your deductible and qualifying safety features may affect your premium.
Jamie can recommend experienced insurance agents for different property types.