Congrats, you have a mutually agreed upon and signed Purchase Agreement - now what?
After the seller and the buyer have signed all the required documents, it is time for the behind the scenes work to start. On average, this takes about 45 days.
STEP ONE
Hopefully the buyer has already secured a pre-approval letter from their lender if using a loan to purchase their new home, if not, this is step one to get to the seller's agent as proof they have take the necessary steps to secure payment for their new purchase. If paying cash, many times, proof of funds is required. If paying with proceeds of a home sale, the listing agent may request information such as the address, if it is under contract or on the market in order to do their due diligence for their clients.
During this step, often the same day or the following from signing the purchase agreement, the buyer's earnest money needs to completed and deposited into the proper trust account. There is a timeline associated with this and often done asap in order to secure the transaction.
STEP TWO
The buyer's agent will send the Purchase Agreement to the lender and the title company. If there are contingencies on the agreement, those need to be completed prior to the lender or title company beginning their research.
CONTINGENCIES
In the North Dakota, the contingencies we see most often that could slow down the closing process are Inspections, Insurance Clue Requests, Appraisals and sale of buyer's current home. Not that is a reason to not add them to your offer, but good to be aware that they all have a time associated with them and all but the appraisal should be completed prior to the title company starting their work.
The buyer and seller agents will work together through the contingencies to make sure both parties are being represented fairly and the sale can move forward.
STEP THREE
Behind the scenes at the chosen title company and lender (if using a loan) will begin which include but not limited to underwriting, title search, property liens, property easements & history and financial research. At this time the lender will also request an appraisal to make sure the loan you are requesting fits with the value of the home.
Depending on the complexity of the home, title work and finances, this could take a few weeks to complete.
STEP FOUR
Once steps one thru three are completed, it is time to schedule closing with the title company! A few days leading up to closing, you will receive your settlement statement for review. Make sure you do your due diligence and review the numbers carefully. You agent will also review it, but the more eyes, the better. If there is something you do not understand, please ask. These statements are known to be confusing.
STEP FIVE
Closing Day - congrats on the sale / purchase of your new home!
WORKING WITH THE RAFTER TEAM
This is a very slimmed down version of the behind the scenes process but when working with us at Rafter Real Estate, we strive for just that. Our clients put their trust in us to know the process, when and where to streamline, and how to get you to the closing table as streamlined as possible.
Thank you for putting your trust in us!
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