The Contingency Period
When your offer has been accepted, we will prepare and forward all relevant agreements to the selected escrow company; and once it’s been confirmed “open,” the contingency period begins.
This is a critical time that allows you to obtain financing, perform inspections and satisfy any other contingencies of your purchase agreement, including obtaining the appraisal. There are set contingency dates and deadlines so we will need to be diligent and moving forward timely. This can get a little stressful, however we are her to help and will guide you all the way to closing.
Many issues may arise during a real estate sale, however these are the standard contractual aspects of most purchase agreements:
- PROPERTY APPRAISAL
An appraisal will be ordered by your mortgage broker or loan officer shortly after they receive escrow confirmation. Once the appraisal report is completed, it will be sent to the lender and/or mortgage broker. If the comparable sales were carefully researched before making the offer, then the value will usually come in at the purchase price.
2. A PHYSICAL INSPECTION
We always recommend hiring a credible inspector to visit the property to inspect all major components and provide a detailed inspection report. Normal wear and tear of any property should be expected; however any significant deterioration or damage will need to be addressed timely and before moving to the next step.
3. HOME INSURANCE
A homeowner’s insurance policy is required if there is financing and is highly recommended in either case. It’s best to have an insurance company selected early and an insurance binder in escrow so that there are no last-minute delays. You can shop around, or we can recommend companies we have had positive experiences with.
4. FINAL LOAN APPROVAL
By the second or third week into escrow, you should have a final loan approval. Various “conditions” or lender requirements may arise during this period and must be handled as quick as possible. Not to worry, we will guide you through all the various obstacles which may arise.