The Life of a Typical Transaction
Every transaction is unique because each offer is unique, that is what makes real estate a challenge and enjoyable. However, many follow the following sequence:
The Offer Is Presented And Signed: Your Buyer's Agent presents your offer to the Seller and the Listing Agent, assists you with your response to counteroffers, if any, and obtains all signatures for a valid contract.
Files Are Set Up And Earnest Money Is Deposited: The Buyer's Agent sends copies of the Purchase & Sale Agreement to the escrow agent and the lender. The Buyer's agent will either deposit the earnest money or have the escrow agent deposit it. (Earnest money may be held until after the inspection contingency is removed, depending on how the contract reads.)
Buyer Applies For Financing: The Buyer should have already applied for their financing. So, now would be the time to start talking to your lender about today's interest rates. However, if the Buyer has not applied with a mortgage lender now is the time.
Buyer Has Inspection Done: Your Buyer's Agent will assist you in arranging the inspections. If the house has structural items that need to be resolved, they are negotiated now and a resolution is agreed upon between Buyer and Seller before the expiration of the inspection contingency and before proceeding to the next step.
Full Title Search Is Ordered: Either escrow, the lender or one of the agents will order a title search and report from the title company. A preliminary title report is usually available from the Listing Agent, if not it is completed in just a few working days.
Appraisal Is Done: The Buyer's Agent gives the appraiser access to the property. The appraiser checks both value and condition of the property. Any repair work required by the appraiser is negotiated at this time and work is typically monitored by the Buyer's Agent. Please note that the primary function of an appraiser is to determine value. An appraisal does not replace having a formal structural inspection.
Loan Is Approved: Occasionally the loan is "conditionally" approved, pending receipt of additional information from the Buyer or pending completion of lender (appraiser) required repairs.
Documents Are Drawn: The lender draws up loan documents and sends them to escrow. Escrow Prepares Closing Documents Escrow prepares the Deed and settlement papers per the contracts terms.
Buyer & Seller Sign: Buyer and Seller have separate appointments to sign papers. This Signing Day occurs 2-4 days prior to the closing date. The Buyer brings a cashier check made out to the Escrow for the balance of the down payment and closing costs.
Documents Reviewed: By Lender and The Title Company - The lender and the title company review all documents for accuracy and the lender releases the loan funding.
Closing: The title company authorizes escrow to record the Deed and title changes with the County Recorder and escrow disburses funds to the Seller.
Possession: This can be the day of closing, or after it, depending on the terms of the contract. The possession date is the day that the Buyer(s) get keys to the home. The Buyer's Agent will make sure to get your keys as soon as they are available to you.
Congratulations!
