I recently posted BUYERS GET OFF THE FENCE, IT'S A PERFECT TIME TO BUY explaning what to expect 
when purchasing a home, including the search for the right home. This is PART II to help explain the escrow process once your offer has been accepted and it goes into escrow (California uses escrows companies verses an attorney as some states do).
Here are the next steps after your offer has been accepted:
- LENDER IS NOTIFIED: You will call your lender and the loan process begins. I will send him/her the contract and he/she will keep me (your Realtor) updated as the escrow moves forward.
- DISCLOSURES: The seller/s will provide you with disclosures about their home. IF the property is bank owned, you will not get disclosures. Read these disclosures carefully, as you will be asked to approve and sign/initial them (contingency).
- INSPECTION PERIOD.Your Purchase Agreement states an X amount of days (the normal is 17 days) to have inspections done:Home Inspection, roof, septic, well, pest, etc. The seller may have agreed to pay for some of these. I will keep you posted on this TIME PERIOD, as this is very important. I will give you a list of local inspectors if you do not know of any. After you've had inspections you may, at that time, ask the seller to make any or all repairs. BUT keep in mind, the seller is not obligated to make any such repairs unless agreed upon in the original purchase contact. The seller must, however, have working smoke alarms in the home and have the water heater braced.
- REMOVING CONTINGENCIES: Okay, the inspections are done, perhaps repairs have been made and all parities are satisfied and now it's time to REMOVE (sign off) contingencies which were stated in your Purchase Agreement. Such contingencies are: Disclosures from sellers, Title Report, Escrow Instructions, Inspections, appraisal, loan (though the loan contingency normally stays in affect until it is funded).
- FINAL WALK THRU: Approximately 5 days prior to your closing date, we do a Walk Thur to make certain that the property is in the same, or better, condition as it was when your made the offer. This is not a contingency of the sale, however.
- THE SIGNING: The escrow company and your lender will make an appointment with you, once all loan documents and closing statements are prepared, to come into their office and SIGN such documents. It is at this time that you will bring in a check (cashiers) for monies owed by you (down payment, closing costs, escrow and title fees). I WILL be here with you at this signing.
- CLOSING: After signing the documents, they are then sent back to the underwriter (lender) for another once over and, if approved, the deed to the home will be sent down to the county recorders office and YOUR name will then go on it. YOU will receive a call from escrow saying "Congrat's" YOU ARE A HOMEOWNER.
- KEYS. I make arrangements to pick up the house keys and deliver them to you.
- CONGRATULATIONS!!!
IMPORTANT LINK BELOW:
REAL ESTATE TERMS & EXPLANATIONS
For your Lake Arrowhead Real Estate needs, CALL: KAT DELONG, REALTOR.
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Very nice post about the process, so many people do not understand it. when I meet new buyers, I take a blank purchase contract with me and got over it, so they understand the process. I like the way you have formatted it, and this is certainly a link that you can send to your buyers! Great job Kat!
Sharon: Thanks so much. I "tried" to make it understandable for all, since most of our contracts are so tedious. I hope it is helpful. I really appreciate your feedback, always!
Kat,
You did a great job making a complicated process easy to understand. I am certain your clients will find this very useful.
Christine: Thank you for the kind words. Have a super day!
Kat,
As usual a very thorough and informative post! I always enjoy reading your posts, in fact, I think this post is so great, I am going to bookmark it so that I will know what to do next time I buy! From you of course! ;)
Michelle: Have I told you lately that YOU'RE my best friend??? ;)
Michelle: Have I told you lately that YOU'RE my best friend??? ;)
Kat, Very good post, its always a good idea for buyers (and sellers too) to know what to expect.
I need to quibble with your assertion that the condition at the final walk-through is not a contingency. Almost all real estate purchase contracts require the seller to maintain the property. In the event that the seller doesn't maintain the property the buyer (and his lender) can back out. It sure sounds like a contincy to me.
Bill Roberts
Bill: Thanks for visiting and quibbling (lol). I totally understand your comment about the walk thru. On our walk thru (Verification of Property) form, it does say this is NOT a contingency, that is why I added that. On our contract it does state that YES the seller must keep the property in "good" condition. So, we're both right. Lol.
Kat,
No, you haven't mentioned it before...however, now that you've said it twice, it must be TRUE!
What's up with this Bill,"The Baby Booming" Quibbler? Shouldn't he be retired by now? ;)
Michelle: YOU crack me up.... and no picking on Bill--after all, he's from Lake Arrowhead, too. (GA, that is). LOL
All right, I'll take it back! A Lake Arrowhead chap is all right by me. Sorry Bill, I don't know what came over me!
Michelle: LOL