I’m Under Contract, Now What?
Once you’ve found your perfect home and have a finalized contract, what next?
Follow these outlined steps to guide you all the way to closing.
Step 1: You’ll work closely with your lender to complete your home loan application.
Your Agent will send over your purchase contract and the documents to accompany that, so no need to worry there.
You will need to provide all requested income and asset documents that your Loan Officer needs.
❗ IMPORTANT: You will need to send any requested documents as soon as possible, as delaying can push closing back.
Step 2: Your Loan Officer (the person who is processing your home loan) will be in direct contact with you to gather all of necessary documents to complete your loan.
Obtain a homeowners insurance policy. All lenders will require that you buy homeowners insurance, which covers the cost of repairing or rebuilding the house in case of damage or catastrophe. Proof of adequate insurance coverage will be needed before your loan can close. Contact an insurance company to open a policy, effective the date of closing, and request that a Declaration be sent to your Loan Officer. You will need to check with your lender to see what the insurance requirements are (such as: coverage limits, and whether flood or hazard
insurance is required). You will also need to provide your Mortgage Company’s name, address, and loan number to the insurance company.
Keep in contact with your Loan Officer to make sure they have all of the documents they need from you.
It is important that during the loan process, you do not make any large purchases, apply for credit (unless directed), change jobs, or do anything to affect your financial situation as these changes could delay the loan process and closing.
Schedule a home inspection with the inspector of your choice. A home inspection will reveal whether there are any significant defects or any major repairs required. The bank may require this, but if not, you may want to get one anyway so you’ll know what you’re getting into. I can help you get this scheduled.
Schedule a pest inspection. Separate from the home inspection, a pest inspector needs to evaluate the level of damage caused by termites and other organisms, such as mold. If the inspector finds a significant infestation, they could recommend extermination, which can be an added expense. You can negotiate with the seller about who will cover that cost. A pest inspection is usually optional but recommended, unless it is a loan or lender requirement.
Your Loan Officer will:
Schedule a home appraisal. Your lender will generally require a home appraisal. During this process, the lender hires an Appraisal Management Company to estimate the home’s value using information about the condition of the home and the values of comparable properties nearby. As long as the appraised value supports the loan you have requested and there are no significant repairs to be made, it shouldn’t hold up the loan.
Your real estate agent will:
Help you get the home inspections scheduled.
Go over the inspection reports with you. We will then put together the “Inspection Notice” advising of any requests to repair and/or remedy any issues found in the inspections. Once that is filled out, your agent will send it over to the listing agent. They will have a number of days to respond whether they will comply with the notice, or make adjustments.
Work directly with your Loan Officer to send them any additional documentation or amendments regarding the purchase contract needed to get the loan processed. Your agent will also send over any inspection reports that your lender requires.
Order title insurance. Your bank will require that you get title insurance, which protects the bank in case someone else turns out to have a legitimate claim to the property, or if there are other defects, liens or claims against the property.
Step 3: Your Loan Officer will then send your loan to an Underwriter who will review it all and make a final decision on your loan.
When your loan is approved, your Loan Officer will schedule your closing.
A day before closing, you will receive an itemized list of exact costs that you will need to bring to closing.
❗ IMPORTANT: Your itemized list of exact costs should only vary slightly from your original Good Faith Estimate. Talk to your Loan Officer immediately if there are charges you did not expect.
You’ll probably need to wire funds or bring cashier’s or bank checks to pay for the charges due at closing. Your Loan Officer or Title Company will advise you on this.
Attend the Final Walkthrough of the home with your agent to assure that all requested repairs have been made and the home is in the same condition it was when you made the offer on it.
Step 4: Attend the closing and get the keys to your new home!