Once you’ve found your dream home and made an offer, you enter into a contract with the seller. We’ve found that this time can be a little confusing if you don’t know what to expect, especially for new homeowners. As a top Roswell real estate team, we’re dedicated to explaining everything we possibly can about every step of the process to home ownership. Today, we’re tackling the contract process, so you know exactly what’s headed your way for each stage of the contract game.
Due Diligence is the first step of the contract process. This time typically lasts 7-10 business days. While it lasts just a few days, this is where the ball starts rolling. During due diligence, you’ll want to cover all of your bases to make absolutely sure that this is the home for you. Start by conducting a home inspection. Your realtor will handle this part of the process for you by lining up the inspection with the listing agent. Going over the inspection is an integral part of the process. It’s important to make sure that you understand exactly what the inspection will cover.
If you’ve chosen the Wright-Clinkscales team as your agents, we stand by our inspectors and can help you completely understand what your inspection will entail. While most states require a seller disclose any property defects, it ultimately falls on the buyer’s shoulders to double check. If you do find problem areas, the buyer has the right to walk away from the contract or request repairs. This is another instance when you can depend on us to negotiate for you!
Appraisal and Financing Contingencies:
The appraisal and financing contingencies are the bulk of the contract process. This stage lasts up to 21 days and includes several important residential real estate milestones. During this time, the home will be appraised. The appraisal is crucial because the value determined by the appraiser is the maximum loan amount from the mortgage company. Should the appraisal come back lower than the loan amount, the seller must reduce the purchase price or the buyer can walk away with his/her earnest money.
The financing contingency comes next. Here, the bank or mortgage company ensures you can obtain a loan for purchasing the home. If for some reason you cannot obtain financing, the buyer keeps the earnest money and can walk away from the deal. Don’t let this part of the contract process scare you. You will be surrounded by people helping you along the way and working with you to make sure you not only understand the process but breeze through it.
Hiring a trusted Realtor will help you feel confident from the time you find your dream home to closing day. If you’re ready to start the process of buying a home, we’d love to chat more with you. And don’t hesitate to reach out if you have any questions about the contract process, or any other part of home buying. We’re always ready to talk more!