Once your offer is accepted by the sellers, there are several contingencies in the contract that give the buyer the opportunity to review information or take specific actions within given timeframes. A contingency is a condition that must be fulfilled before the contract can be executed. Note that contingencies are removed in writing, and it is essential to meet the deadlines specified for each contingency in the purchase agreement. At this point we may have already removed a few contingencies, but let’s review the contingency process in more detail.
If we’ve noted a Buyer Loan or Appraisal Contingency in the purchase agreement, our next step will be to schedule an appraisal of the property. The purpose of the appraisal is to ascertain that the home is worth the amount you’ve offered to pay; an independent appraisal is typically required by your mortgage lender as part of the loan approval process. Click here for more specifics about the appraisal process.
Once the inspections and appraisals are completed and all contingencies are removed, it is time to give notice to your landlord if you are renting or leasing. By law, you must provide sufficient notice, which is dependent upon your rental or lease agreement. Click here to learn more about giving notice and your various options.
As things continue to progress smoothly, the time has come to initiate the moving process. If you haven’t already done so, get estimates from movers and book one as soon as possible. Unless the sellers have a rent back period, you will be able to begin moving into your new home the day escrow closes. If you have animals, you should also begin thinking about how to make the move as stress-free for your pets as possible. Click here for more information on how to make the move into your new home a smooth one.
Now is the time to contact the various utilities and service providers to transfer or set up service to your home on the day of closing. With everything that is going on, this is a task that can easily get overlooked. Read more about setting up utilities at your new residence.
You will also want to obtain homeowner’s insurance for your new residence sooner versus later. Your lender will require proof of insurance during the underwriting process so we recommend you begin getting quotes a few weeks prior to the close of escrow. Learn more about the importance of homeowner’s insurance and why you should shop around.
We are getting close to the finishing line! Let’s look in more detail at the next phase, which includes your final loan approval, document sign off, wiring the remainder of your down payment and your final walk-through of the property.
