“Under-Contract”/Closing Process

Once a seller and buyer have agreed upon a purchase price and other sale conditions, and a Purchase Agreement (PA) has been signed, a property is then considered to be “under contract”, or moving towards a closing. Here’s a quick summary of what comes next in the process when financing is involved:

Buyer

• Applies for a mortgage within 3 days
• Provides conditional mortgage commitment within 5 days
• Conducts a home inspection within timeframe on PA (any issues are negotiated in good faith)
• Lender orders a property appraisal
• Appraisal and buyer’s financial information are sent to lender’s underwriter (underwriting can take up to 2+ weeks in some cases)
• When under writer gives final approval of the loan, a closing is scheduled

Seller

• Provides the buyer with a Disclosure Statement
• Seller’s agent orders title work through a title company
• Conducts any township/county-required septic inspections
• Resolves any issues that “cloud” the clear title before closing