In this step we’ll discuss how to adhere to the timelines and terms of your contract, outline the inspection process in detail and take a look at what’s happening with your loan.
Are you selling your current home?
If you’re purchasing your next-step home contingent on the sale of your current home, then you’ll need to simultaneously complete the necessary seller steps for your current property during this time period.
For specifics on selling a home in NWA, check out our seller’s guide here.
Throughout the pending period, the major tasks of the seller include:
Throughout the pending period, your agent is a busy bee – s/he is:
Everyone on your team is charging forward to execute your contract like a pack of wild Razorbacks! A lot is happening behind the scenes. Title work is being performed and your lender is actively moving forward to process your loan. Additionally, inspections, surveys and home warranties are being arranged (as per the terms of the contract).
Understand that this is a time of collaboration between you and the seller. You need to know what you agreed to, follow through and adhere to the strict timelines in the contract.
The length of this step is set by the closing date stated on your contract. For a typical contract this will be 30 to 45 days from the date the contract was signed by all parties. However, the length can vary drastically depending on how the home is financed and the terms/concessions agreed to between you and the seller.
To legally transfer property in Arkansas a title search must be performed. Title researchers at a title company will examine available public records on the subject property to check that there are no outstanding circumstances that could endanger your ownership rights.
Although you’ve negotiated a contract, the inspection process is a reminder that there is still another round of negotiations to go. This process opens up the door for more discussion with the seller.
Inspection day is your opportunity to bring contractors and repairmen to the property to get quotes, bring family members for a sneak peek, do some measuring, and look at the house in great detail. This will likely be the last time you are in the house until the final walk-through.
If your contract grants you the option to inspect, you have 10 business days to do so. Many buyers choose to hire a professional licensed home inspector to do a full inspection of the home they wish to purchase. The amount of time the inspection takes and how much the inspection will cost depends on the size of the home. The average cost is $300-$400.
Even if you can not make it the entire time, it is a good idea to come at the end of the inspection so the inspector can walk you through the house and explain any findings in person. He/she will email you a comprehensive report with pictures and a full write up of their findings (usually within 24 hours).
Based on the inspection report, you may find that you want to get some quotes for various repairs. If so, these should be done within the allotted 10 day inspection period as well.
Following the inspection, you will submit a document known as the IRSA (Inspection Repair and Survey Addendum) to the seller with a list of items (if any) you wish the seller to fix before you are willing to purchase the home. They can either agree to your repair requests or respond to your requests with a list of items they are willing to do (if any). You will then need to determine if these terms are acceptable to you.
The appraisal is part of the lending process. An appraisal is conducted to assure the bank that they are making a wise investment by giving you a note for the price of the home in question.
The appraisal process will vary based on the type of loan you are requesting. The following graphics will familiarize you with what to expect from the process.
Sometimes changes to the contract are necessary. Any changes will be made on the appropriate NWA real estate forms and signed by all parties. The two most common forms used to make changes to a contract during the execution phase are the General Addendum and the Closing Date Addendum.
In order to close on time you need to do everything you can to accommodate schedules and adhere to deadlines. However, there are some things that are simply out of your control. For instance, the underwriting process could take longer than projected, or the seller may need some extra time to make the repairs you requested.
Remember, all parties are working hard to meet the terms of the contract. The execution of the contract will require the involvement and collaboration of multiple people from many industries.