Now you are under contract and Time is of the Essence. When you are under contract, there are deadlines we have to meet! This is where communication is so important and it is so important for every one to be on the same page. Here is the order in which everything will happen!

1. Your offer gets accepted, so now you have 3-5 days to turn in your EMD (earnest money deposit). Your EMD is a “Good Faith Deposit” in which you, as the Home Buyer, gives to the seller, a sum of money when the offer is accepted to prove you are serious about purchasing their property! If you make it to closing, this deposit will go toward your closing costs. You can get your EMD back if you back out of the contract for good reasoning.

2. Once the offer is accepted, it will be binding. Your inspection period, “Due Diligence Period” will start on the binding (acceptance date) stated in the contract. The Due Diligence Period usually is 7-10 days starting on the Binding Date of the Contract. During the Due Diligence Period, you will hire an inspector to inspect every inch of the house, looking for defects in the property. The inspector will test the electricity, HVAC, and look at the whole house for damage or repairs needed. Once the inspection report comes back, you can have contractors come to the property for quotes. Once we get the quotes, and decide what is important to you, I will negotiate on your behalf, the repairs you would like the seller to fix. The seller and buyer must come to an agreement before the Due Diligence Period expires. If you and the seller do not come to an agreement or you think the house is no longer worth purchasing, you can cancel the contract and get your EMD back. If you and the seller come to an agreement, we will move to the next phase of the contract.

3. Next, the lender will order an appraisal. An appraisal is a written report by a licensed professional to determine the fair market value of the property you are purchasing. The lender will not finance the loan for more than what the property is worth. If the appraisal comes in low, the seller will be asked to reduce the purchase price or the seller will disagree and ask the buyer to pay the difference in the purchase price and the market value. If the appraisal comes back at purchase price, and no repairs needed, then you can move forward.

4. Yay!! you made it through the Due Diligence Period and the appraisal!! Now the lender has to get you Clear to Close! The underwriter, will ask the lender to verify all your information again and send it to the underwriter. The underwriter, reviews your credit, W-2s, and your capacity to repay the loan. The underwriter will check for any red flags, such as unexplained deposits into your bank account, if you have taken out any loans, got a new car or credit card while being under contract. (these things will keep you from closing). Once the underwriter verifies everything and looks at the appraisal report, he will approve the loan as long as everything looks good! Now the appraisal is over and you got the Clear to Close, we go to closing!

5. Hooray!! You are about to close. Now the lender will tell you how much you need to wire to the closing attorney! These funds will need to be wired before closing!

6. You made it! Now it’s closing day and you get to seat down with the attorney to sign all important documents, then you get the keys to your new Home!

Keep in mind, once you get pre-approved for a mortgage loan, do not get a new car, a new loan, a new credit card, do not use Klarna, AfterPay, etc., or buy a car from a buy here, pay here place!

If you have any questions, please reach out to me by email, text, or call! I don’t mind answering questions, and helping you reach your real estate goals!

Melinda Tindell Northwest Communities Real Estate Group mtindellrealestate@gmail.com 678-956-0454