Now That Your Contract Is Accepted

Once you’ve found a property and signed a contract to purchase that property, you will contact the lender. The lender will order an appraisal which will take about a week, unless you’re in a market where there are a lot of home sales demanding the attention of all available appraisers. The completed appraisal will be formally submitted to the lender who must then accept it. This process takes more time.

The lender will also order (unless this was already done as part of your pre-approval) a three-bureau report to make sure that your credit is worthy to warrant the financing you’re requesting.

Until you close on the property, you’ll want to monitor the process to see that everything is proceeding smoothly. Even the most minor problems can take weeks to correct, and cause serious delays. You can assure fewer difficulties by making sure that things are in order before the process begins.

First and foremost, get a copy of your credit report and make sure it is accurate. It’s not unheard of for mistakes to be present. If there are problems, find out how to fix them. If the problems cannot be corrected, you may not be able to finance a home.

Make sure that the appraisal amount is sufficient. If it’s not, you may have to come up with additional funds or select another lender or a different appraiser. You might also be able to submit comparables to show that the appraisal is in error if you feel strongly that it is too low.

If you need to cash in stocks, bonds, or other assets to have enough cash for the down payment and closing costs, find out how long this will take. Make arrangements so that the process proceeds in a timely fashion and doesn’t stall your closing.

If the home inspection revealed any problems, verify that these things are being corrected. Generally, the purchase cannot be completed until the work is finished, so delays in making repairs will postpone closing.

As you prepare to close on your new home, stay in touch with your Realtor who will advise you of matters you need to address. Your real estate professional can also help you track the progress of other issues. Communicate clearly so that you know what’s expected of you, and be clear about what you expect.