Understanding Your Purchase Agreement Deadlines
Congratulations! You've put an offer in on a home, and the seller's have accepted it. Now all you have to do is wait for the closing date to finalize the paperwork and collect keys to your new home, right? Actually, there's quite a bit more to buying a home than just that. Most purchase agreements are outlined with a number of items that must be satisfied prior to closing in order for the sale to go through. To ensure you know what your responsibilities are as a buyer, we've broken down some important information in an easy to read format for your convenience. Take a look at the following items and what your duties are in regards to the contract.
Earnest Money
Earnest money is a deposit made by the buyer as a show of good faith in a transaction. Typically the amount of earnest money required to secure the closing is agreed upon and outlined in the contract agreement. It's important to make sure that you have your earnest money delivered in a timely manner according to the contract agreement terms to avoid being in breach.
Lender Documents
As soon as you have an executed sales contract, you will need to communicate with your mortgage
lender so that they can start the mortgage process. Get any requested documentation to them to prevent timeline issues. Check in with them regularly to verify that they are on track. If a lender does not complete the loan process in a timely manner, it can cause you to be in breach of contract by not closing on time.
Title Commitment
It is typically the buyer's responsibility to request a title commitment. The title company will issue a title commitment that reviews the title history of the property and discloses any liens against the property that need to be resolved before closing. Review your title commitment carefully. If you see anything you're unsure of or concerned about check with your agent or ask an attorney about it.
Property Inspections
Once a contract is executed the clock starts for the inspection period. It's important to schedule all inspections in enough time for the inspector to be able to complete the inspection, produce and deliver a report prior to that deadline. By having an inspection done, you're removing any potential risk of unforeseen future maintenance issues with the home, so this is a very important step to follow through with.
Appraisal
Once you have cleared the inspection process, your lender will need to order a home appraisal to verify that the value of the home is worth the loan amount requested. More than likely you'll be responsible for the cost of the appraisal, so it’s best to wait until after you have completed the inspection process. Just be aware of the contract timelines for the appraisal.
Homeowners Insurance & Warranties
Most lenders require you to have a Homeowner’s Insurance Policy for the property you're buying. Some mortgage companies can bundle a policy in the loan, but if not you will want to shop around and choose a homeowners insurance provider and policy that works best for you. Once you have the policy in place, let your lender, agent, and title company know.
If in your purchase agreement the sellers have offered an allowance for purchasing a home warranty, you’ll want to shop for home warranty companies as well. Once you have found the right home warranty provider, be sure that the title company knows who you plan to use.
Turn On Utilities
You'll need to get utilities turned on or transferred into your name for the new property. Generally sellers provide all of the relevant utility contact info in the Seller’s Disclosure. If it isn't provided in the disclosure, your real estate agent can assist in compiling that info for you. Make sure you schedule utilities to be in your name for the date of closing so there are no issues with taking occupancy that day if you plan to start moving immediately.
Schedule Closing Date & Time
The closing date has been set in the purchase agreement, so the title company is aware of the closing date. Either you or your real estate agent will need to contact the title company to schedule a time slot for closing. If you wish to be there during the same time as the seller, you'll need to coordinate times with the seller's agent or check with the title company for available coordinating times.
Final Walk-Through
It's important to do one last walk-through of the property before closing. The purpose is to verify that any repairs have been completed, that all of the seller’s personal belongings have been moved out, and to make sure that all contractual agreements have been met. It’s just another way to make sure that no major issues arise that could cause the closing to fall through.
Close The Transaction
On the day of closing make sure to bring a state issued ID or some form of government issued identification. If you have to pay any funds at closing, be sure to either have a cashier's check with you or wired funds submitted prior to closing. Most of the time, closings take place at the title company to sign all closing documents. Once the documentation has been signed and your lender has funded the transaction, you officially receive possession of your new home!
While this all may seem like a lot to remember and to follow through with, just remember that by having an experienced buyer's agent at the Lake of the Ozarks on your side, the process can go quite smoothly and quickly. So, if you're thinking about buying a house at the Lake of the Ozarks, contact Team Andy Gibson and allow us to put our knowledge and experience to work for you through your next home buying process!
Earnest Money
Earnest money is a deposit made by the buyer as a show of good faith in a transaction. Typically the amount of earnest money required to secure the closing is agreed upon and outlined in the contract agreement. It's important to make sure that you have your earnest money delivered in a timely manner according to the contract agreement terms to avoid being in breach.
Lender Documents
As soon as you have an executed sales contract, you will need to communicate with your mortgage
lender so that they can start the mortgage process. Get any requested documentation to them to prevent timeline issues. Check in with them regularly to verify that they are on track. If a lender does not complete the loan process in a timely manner, it can cause you to be in breach of contract by not closing on time.
Title Commitment
It is typically the buyer's responsibility to request a title commitment. The title company will issue a title commitment that reviews the title history of the property and discloses any liens against the property that need to be resolved before closing. Review your title commitment carefully. If you see anything you're unsure of or concerned about check with your agent or ask an attorney about it.
Property Inspections
Once a contract is executed the clock starts for the inspection period. It's important to schedule all inspections in enough time for the inspector to be able to complete the inspection, produce and deliver a report prior to that deadline. By having an inspection done, you're removing any potential risk of unforeseen future maintenance issues with the home, so this is a very important step to follow through with.Appraisal
Once you have cleared the inspection process, your lender will need to order a home appraisal to verify that the value of the home is worth the loan amount requested. More than likely you'll be responsible for the cost of the appraisal, so it’s best to wait until after you have completed the inspection process. Just be aware of the contract timelines for the appraisal.
Homeowners Insurance & Warranties
Most lenders require you to have a Homeowner’s Insurance Policy for the property you're buying. Some mortgage companies can bundle a policy in the loan, but if not you will want to shop around and choose a homeowners insurance provider and policy that works best for you. Once you have the policy in place, let your lender, agent, and title company know.
If in your purchase agreement the sellers have offered an allowance for purchasing a home warranty, you’ll want to shop for home warranty companies as well. Once you have found the right home warranty provider, be sure that the title company knows who you plan to use.
Turn On Utilities
You'll need to get utilities turned on or transferred into your name for the new property. Generally sellers provide all of the relevant utility contact info in the Seller’s Disclosure. If it isn't provided in the disclosure, your real estate agent can assist in compiling that info for you. Make sure you schedule utilities to be in your name for the date of closing so there are no issues with taking occupancy that day if you plan to start moving immediately.
Schedule Closing Date & Time
The closing date has been set in the purchase agreement, so the title company is aware of the closing date. Either you or your real estate agent will need to contact the title company to schedule a time slot for closing. If you wish to be there during the same time as the seller, you'll need to coordinate times with the seller's agent or check with the title company for available coordinating times.
Final Walk-Through
It's important to do one last walk-through of the property before closing. The purpose is to verify that any repairs have been completed, that all of the seller’s personal belongings have been moved out, and to make sure that all contractual agreements have been met. It’s just another way to make sure that no major issues arise that could cause the closing to fall through.
Close The Transaction
On the day of closing make sure to bring a state issued ID or some form of government issued identification. If you have to pay any funds at closing, be sure to either have a cashier's check with you or wired funds submitted prior to closing. Most of the time, closings take place at the title company to sign all closing documents. Once the documentation has been signed and your lender has funded the transaction, you officially receive possession of your new home!
While this all may seem like a lot to remember and to follow through with, just remember that by having an experienced buyer's agent at the Lake of the Ozarks on your side, the process can go quite smoothly and quickly. So, if you're thinking about buying a house at the Lake of the Ozarks, contact Team Andy Gibson and allow us to put our knowledge and experience to work for you through your next home buying process!
Keller Williams Lake of the Ozarks Realty
858 Hwy 42
Osage Beach, MO 65065
573-286-5907 Cell
573-348-9898 Office
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