There are so many things that are involved with buying or selling a home. A lot of people think it’s SO easy to buy or sell a home, but when they are actually doing it, they realize that so many things can go wrong.
The key thing that you should stay on top of when you’re purchasing a home is the deadlines! Every contract has deadlines that need to be met or you could lose your deal. Residential real estate purchase contracts are different depending on the state and the real estate board in your area.
The purchase contract should have a specific deadline or a time, such as within 5 business days, for the buyer to have a home inspection performed and when the repairs request list should be submitted to the seller. An amount of time is usually also stated in the contract for the amount of time that the seller to respond to home inspection repairs requests. If further inspections are needed such as termites (VA loan requirement), well or septic ( if needed), will also have a deadline.
The purchase contract will usually have a deadline for the buyer to complete their mortgage application and submit it back to the mortgage lender. The lender usually does not start the loan application until AFTER all the home inspection issues have come to an agreement by both parties. So time is of the essence to resolve inspection issues so that the lender can start their loan and order the appraisal.
Also, pay attention to the deadline for the “Intent To Proceed” as it’s called in certain states or the time when the loan has been processed and has come out of underwriting. At this point, the mortgage file should be almost complete for the “Clear to Close” or a “Denial” will be released.
The purchase contract should state the amount of time or an actual deadline date that the appraisal should be ordered. The appraisal is ordered by the buyer’s mortgage lender and is paid by the buyer. In a cash deal, the buyer does not have to have an appraisal if they don’t desire to.
Usually, on the purchase contract, there is a deadline for the buyer to purchase their homeowner’s insurance policy. This is usually from the same company that the buyer has their car insurance. The mortgage lender usually requires the “binder” approximately two weeks before closing.
These are usually standard elements of the contract. If you have a hard time finding these items and deadlines on your contract, your real estate sales agent or real estate attorney will be able to help you.
Written By: Shena Omotola, Dream Home Specialist & Broker Owner of Skyward Realty – Skyward Realty services Chicago, Suburbs, and Northwest Indiana
P.S. Feel free to email me any questions. I’m always here to help. Check out my recent resources for first time home buyers and sellers.
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