From Contract to Closing, What Happens Next?

After hours of browsing online, a month of Sundays spent touring open houses; and numerous appointments to preview your pared-down list of properties, you’ve made an offer and had it accepted.   Already pre-approved for a mortgage, and with a signed contract in hand, you breathe a deep sigh of relief as your mind flashes blissfully forward to the day when you finally take possession of your long-awaited dream home. Waiting to Pop the Champagne The key word here is “when.”  For even though a signed contract helps clear a path to move-in day, there is quite a bit more that must be done before the property is finally yours.  Think of it as halftime at the Super Bowl with your team in a comfortable lead.   Things definitely look good, but you still have another half to play before you can collect the trophy.  So keep the champagne on ice while you pursue all the steps necessary to assure a successful closing.  Your bottle of the bubbly will taste that much sweeter for the effort. Not all property transactions are the same, but most require the buyer to take some immediate steps once an agreed-upon contract is in hand.  Tapping into your agent’s expertise, the major ones include scheduling a property inspection, arranging for homeowner’s insurance, choosing a closing agent; and finalizing a loan commitment if a mortgage is needed. Hurrying with the Home Inspection Typically you have up to fifteen calendar days from the contract date to perform a home inspection, but it is best to accomplish this as quickly as possible.  This will give you more time to digest the results and discuss them with your agent.  It also gives you added time to arrange for homeowner’s insurance, once a satisfactory inspection removes one of the biggest hurdles to a successful closing. By Florida law, the seller is required to disclose all known defects with the property.  Therefore, it is wise to review the seller’s property disclosures again point-by-point with your agent before the inspection; as you may want the inspector to pay close attention to areas of the property with known problems or defects.  If you aren’t acquainted with a good home inspector, your agent will recommend several to choose from. Financing If financing is needed, another task to perform during the contract-to-closing period is to transform your mortgage pre-approval into a final loan commitment.  Pre-approval is a good indicator of your ability to afford a mortgage, but does not guarantee the loan.  It simply states that you are generally qualified to purchase a home up to a certain amount based upon a preliminary examination of your personal financial qualifications.  A loan commitment, on the other hand, comes only after you’ve supplied rigorous documentation to verify such items as your income, assets, employment history, credit status, the valuation and condition of the subject property; and clear title for the seller to transfer ownership to you.  By necessity therefore, this happens much closer to the actual closing date. Navigating through the Process Many home buyers and sellers are unaware of all the steps involved in the contract-to-closing process; and the true value that a real estate agent brings to a successful property transaction.  Nor do they recognize the merits of using a full-service real estate company until many of its component services—staffed by title, mortgage and other real estate specialists—team-up to manage a smooth closing on your behalf. Getting back to that bottle of champagne, with keys and title to the new property finally in your hands after a successful closing, you just may want to share it with your real estate team.