Many times contracts are accepted verbally by the seller’s agent first while signatures are gathered from the sellers. It can take 1 – 2 days for all parties to sign and return the contract so be patient. Please keep in mind that until we have an executed contract, which means everything has been signed by both the sellers and the buyers, we do not have an enforceable contract. Therefore, it’s urgent that a signed contract be received by all parties quickly.
Once a signed contract is received, several things need to happen:
- The contract is sent to your mortgage lender. I will use our online system DotLoop to include your lender. This lets your mortgage lender know that you’re under contract and he/she starts the process for getting you final approved for the mortgage (remember, right now you’re only pre-approved). Be sure to respond promptly to your mortgage lender! Time is of the essence and you could be in default if you delay in responding. He/She will ask you to fill out a lot more paperwork. Unfortunately, it’s not optional; it’s required and the quicker you can fill it out and get it back to them, the better. Remember the Buyer 10 Commandments from your buyer packet!
- The home inspection should be scheduled and performed very soon.
- Earnest Money In most transactions, the earnest money check is made out to the seller’s agent’s brokerage and is either in the form of a personal check or a certified check (I’ll let you know which one you need) This money is dropped off at the seller’s agent’s office within 5-7 business days of contract acceptance. When you drop it off make sure you ask for a receipt. Hold on to the receipt and bring it with you to closing. Earnest money is another sign to the seller that you are a serious buyer. There is no set amount but a good rule of thumb is 1-2% of the purchase price. Here’s a good article on earnest money from Realtor.com
I’ll email you every few days detailing our next step. Think of it as my friendly way of giving you homework to ensure a smooth transaction and to help you make sure everything gets done on time so that we fulfill our contractual obligations to avoid any defaults.
Questions? Call me @ (615) 977-8444 or email whereyoulivetn@gmail.com