What Happens After Signing a Contract On A House ? Right after you have made a purchase offer of real estate and the terms of the contract have been met, and the Home seller has gladly and lawfully accepted the offer. Should that be all about the purchase? If no, what are the other necessary steps to take after signing the contract on the house.
It is important to note that every terms and condition agreed upon by the parties manifest and begin to come into play. To start with after signing a contract, the property in question is withdrawn from the open real estate market and enters escrow, and the buyer will as well deposit some money in good faith into an escrow account. This particular amount paid is supervised by an escrow company chosen by the buyer, this amount deposited is at the end of the day applied to purchase price of the home, unless the salient contingencies in the contractual term failed to be satisfied.
To finance the contract, the buyer must secure a mortgage approval; this can be rigorous and take a longer time to obtain. It’s advisable the buyer gets pre-qualified from a lending institution before scouting for a new home to speed up the lending process. For a loan request to be approved, the lending institution will be willing to assess the value of the property at the sale price or something higher.
Property Inspection :-
The inspection must take place by a licensed and certified property inspector to check the quality of the house, and if it’s carried out and serious defects are showing up, it can serve as a ground to nullify the purchase agreement.
What Happens After Signing a Contract On A House
The title of the property must be clearly stated to have a perfect exchange of ownership and possession. The technical know-how of an escrow officer is needed to explain the title report to both parties clearly. If any of the parties is breaching the terms stated in the purchase contract, the contract will be nullified, and the good faith money held in the escrow will be released to the buyer.
Making the final touches :-
Some necessary steps are to be taken by the Home seller during the escrow period; these steps prevent any hindrance that may arise in the process of having a successful transfer of the property. One of the steps to consider is to obtain the homeowner’s insurance, a lending institution mostly requires it, regulations on transfer of ownership must be met, and the arrangement of the final property walk-through. This walk-through assures the buyer that the contractual agreement earlier agreed upon is still intact. The walk-through process comes before the closing date, this closing date is unanimously taken by both parties involved in the purchase contract, it’s when all necessary documents are signed, paid the closing cost and most importantly, the ownership of the house changed legally. After all this, the buyer can now finalize the process by moving to the home bought and claim the ownership and possession.