Contract to Closing – BUYER

Prequalification by a lender(s)

• Know your interest rate and amortization terms
• Get written Good Faith Estimate: closing cost breakdown; including prepaid taxes and insurance
• Monthly payment including principal interest, taxes, insurance, maintenance fee (if applicable)
• Know your income to debt ratios
• Find the property you want to purchase

Write an offer with an earnest money deposit, usually 5-10% of the purchase price depending upon your loan

• Offer is presented to the seller: he can 1) accept 2) reject or 3) counteroffer
•  Once the counteroffer is received, you have the same options; accept-reject-counter.
•  This continues until buyer and seller agree on the price and terms

Once contract is accepted and signed

• Order inspections.  If it is an As Is sale, you will have 10 days to have inspections made and decide if you are accepting the property or cancelling. Cancelling must be done in writing within the inspection period.
• Have your lender order the property appraisal (banks valuation of the property)
• Apply for insurance and obtain insurance binder: includes 4 point inspection, windstorm and flood (if applicable).   A 4Pt Insurance Inspection is mandatory to obtain homeowner insurance: roof, A/C, electrical & plumbing, plus Wind Mitigation report.
• Follow-up with your lender to comply with their required documentation and verifications within the contract time period; usually between 20-30 days.

Five days prior to closing

• Schedule utilities connections: telephone, cable, internet, water & sewer, electricity, and gas if applicable
• Review closing statement (HUD)

Two days prior to closing

• Walk through inspection: to make sure all items and property are in the same conditions at the time of contract signing
• Wire or obtain a cashier’s check for the balance of funds due at closing

Closing Day!