What Happens After the Contract Is Signed for Your New Home?

For Buyers Only Real Estate Video Blog with Sharon Stevens

From contract to closing, there are many steps that need to be taken before you can call your new home your own.

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What happens after the contract is signed for your new home?
There are a lot of things that go on behind the scenes from contract to closing, so it’s very important that everyone involved in the transaction work together and be proactive.
First, you must turn in your escrow deposit to the closing attorney or title company within the time frame specified in the contract. This time frame is usually one to three days.
Next, you need to schedule all your inspections for the new house. These can include a general home inspection, a termite inspection, a well and septic inspection, and any other inspection you feel you need. It’s important that you get these done as soon as possible so you can start negotiating repairs for the home.
Your most important job at this juncture is to remain in contact with your lender in case they need any additional documentation. We also recommend keeping copies of anything you send them in case they ask for something you’ve already sent. We know this sounds frustrating, but it happens.

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It’s very important that you, your agent, and your lender work together.

Also, don’t change your credit status during this process, or at least check with your lender before doing anything that might affect it, like opening or closing a credit card or buying a car.
Once the repair negotiations are done and all the necessary repairs are made, it’s time to order an appraisal. Make sure the inspection report is squared away before doing so. If the house appraises for the price you’re paying or higher—perfect! If it appraises lower, you can renegotiate the price, walk away from the deal, or work out another plan. Though you’re the one who pays for the appraisal, it’s mainly done for the benefit of the lender because they’re trying to protect their investment.
While that’s going on, you’ll need to gather all the necessary information needed in order to transfer the home’s utilities to you and obtain homeowners insurance.
After that, if your financing is good, all the repairs are handled, and everything else checks out, you can set the closing date. At that point, the contract you signed 30 to 45 days ago is pretty much a done deal.
Now you can celebrate your new home!
As always, if you have any questions or you’re thinking about buying or selling a home in the St. Augustine area, don’t hesitate to reach out to us. We’d be glad to help you.