From Contract to Settlement
Now that a sales contract has been negotiated and accepted by both buyer and seller, the transactions is in the processing phase. There are many elements that must be coordinated. The three primary areas include satisfying any contingencies that exist in the contract, assisting the purchaser in arranging financing and guiding the completion of all items required for settlement.Satisfying Contingencies
The listing and/or selling agent(s) will work toward resolving any contingency that may exist. The entire agreement may hinge on the satisfaction of a contingency.
An option type contingency often gives one party to the contract the right to void the agreement if certain terms are not met. This situation may exist in a home inspection contingency, an interest rate contingency or a point ceiling contingency.
A condition type contingency requires that specific thing must happen for the sale to consummate at thc stated terms. Examples of this type of contingency involve the appraisal, the approval of financing for the buyer, or perhaps the sale of another property.
In all cases, your agent will be working to help coordinate and assist in the resolution of any contingencies.
Arranging FinancingThis process will often begin before a buyer even looks at properties. Your Realtor® works to determine what size monthly payment a buyer will qualify for and assists in identifying what type of loan is best. Often, your agent will call on the assistance of a mortgage loan officer to provide additional guidance for the purchaser.
The agent may assist the buyer with their selection of a loan institution and completion of a loan application. Once the loan application has been made, your agent will work and coordinate with the lender to help the purchasers obtain final loan approval. The loan approval process usually takes an average of 30 days for conventional financing and up to 60 days for VA or FHA. This length of time is due mostly to the appraisal process, and the gathering of necessary papers and documents required for final approval. However, this process is speeding up and it may be possible to accomplish everything in a shorter period of time.
Preparing For SettlementFrom the time of contract to settlement, the activity of preparing for settlement is one of coordination with many parties. Among these are the settlement agency, the lender; the buyer; the seller, the selling agent, the termite inspection company and the appraiser. The selling agent will remind the purchaser to bring an insurance policy to settlement, inform them as to how much money will be needed at settlement, and advise the buyer as to coordinating of the utilities change over. The agent will also keep seller and buyer informed of progress and just prior to settlement, will conduct the final walk through with the buyer.
© 1999 Tom Vesolich , All right reserved