“You have signed a contract to purchase a new home – now what happens ?”

Answer : Before the contract was signed the buyer should have gotten a pre-qualification letter from their proposed lender. Usually within 5 days after the contract has been signed by both parties, the buyer needs to go to their lender and make the formal mortgage application.

ALERT FOR BUYERS – After you have made your mortgage application do NOT go out and charge a bunch of new furniture for your house or buy a new car or make any other large purchases, as this could mean your mortgage will be turned down.

If specified in the contract, the buyer would also make arrangements for the Home Inspection. There are specific dates which must be met in order for the Inspection Clause to serve as it is intended. The buyer should be prepared that there may be lots of little items on the repair list and not be overwhelmed by a 30 page report. Your Realtor will work with you to determine what items are truly healthand safety issues and which are just items that are now code, but were not when the house is built. Older houses have issues – some serious and some that can be fixed in five minutes. Carefully review your report, call a contractor and evaluate your options. Remember that you want to buy, the seller wants to sell and try to make it a win-win situation.

While this is happening, the lender will have requested the appraisal of the property to insure there is adequate value for the bank to make the mortgage loan. The lender will also be getting verifications for funds, employment history, and debts as specified by the buyer in their application.

The seller will need to have the termite inspection done, if requested in the contract. If inspection repairs are agreed to, those also need to be done.

A few days before settlement, make sure you call the electric company and the gas company, if applicable, to put the utilities into your name. The seller will have called to take the utilities out of their name as of the date of settlement and you do not want the utilities turned off when you are trying to move in. Don’t forget to file change of address cards with the post office.

Move in and enjoy your new home !