Step 6: We’re under contract, now what?
For most buyers, once you have an executed contract, you are in the “option period.” This is your time (typically ten days) to have the home inspected and do all your due diligence on the house and neighborhood to be certain you want to move forward with the purchase. After inspections, you’ll negotiate any repairs or seller concessions, and once you have completed that the status will go to “pending.” You should be communicating regularly with your lender and agent, and providing requested documents as quickly as possible, because there are strict timeline to observe. Also, the title company will be preparing the title commitment for you, and if there is an HOA the agents will be working on obtaining the necessary documentation for you. Your lender will order an appraisal, and if a new survey is needed that will be ordered as well. Other decisions such as homeowner’s insurance and choosing a home warranty company are your responsibility during this this “contract-to-close” period. The ultimate goal is to have your file approved by the lender’s underwriters, and to sign the final disclosures from the lender in the time frame set by law. Once you have the “clear-to-close” you are ready to sign the documents and become a homeowner!