Crucial Steps: The 'Under Contract' Phase in Home Buying 🏡🔑
Dream home found. ✅
Inspection completed. ✅
Appraisal glowing. ✅
Ready for the keys? Not so fast! Before closing, remember the importance of the "under contract" phase. Like a recipe, skip a step, and the result changes. Each home buying step matters! 🏡🔑
Before you officially buy a new home...
"Under contract" means both the buyer and seller agreed on the sale terms and signed a contract. After that, the buyer goes through an appraisal and inspection. Once those are done, there's a waiting period. The lender takes charge during this time, communicating with the buyer until closing. After getting the appraisal, the buyer's file goes to the "underwriting" stage, where bank underwriters check if all loan conditions are met.
Documents You Need Before Closing
When getting a mortgage, your bank may ask for some additional documents. Here's what you should have ready:
Bank Statements: Keep updated bank statements handy as the closing process takes time, and your lender may need the latest information.
Pay Stubs: If your income changes during the home buying process, your lender will ask for updated pay stubs.
Gift Letters: If you're getting money from family or friends for the home purchase, your lender will guide you on how to explain this to the underwriters.
Explanation Letters: Lenders might ask you to write letters explaining certain aspects of your financial history, such as past credit issues or employment gaps.
Home Insurance Info: It's a standard requirement to have good home insurance. Take the time to find the best policy during this phase.
Here's the lowdown about the home closing timeline
It depends on two things:
Now, it's important to know – you're in control here! Your agent and lender will help, but it's up to you to provide the necessary documents on time.
If you're quick with the paperwork, you might close in 30 days (that's the dream!). Realistically, it often takes around 45 to 60 days. Once the lender gives the final nod with "CLEAR TO CLOSE," you're good to go, and your dream home is officially yours! 🥳
At the closing
You sign papers, pay your down payment and closing costs with a certified check to the title company. Closing costs cover fees like lender fees, appraisal, and title company fees.
Your earnest money is credited, reducing the total due. Your lender gives you an estimated out-of-pocket cost beforehand. The whole process takes about an hour, and once it's done, your homeownership is officially recorded! 🎉
Ready to Begin Buying a Home? I understand it might seem like a lot by now. Reading all this information at once can be overwhelming, but that's okay. That's why it's crucial to team up with a local agent who is well-established in your area and truly knows their stuff! 👏🏼
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Born and raised in the peach state, I take pride in what I do and genuinely enjoy helping my clients. Let me be your go-to gal in real estate and help you personally through the process!