The steps after a home goes under contract involve several crucial processes that lead to the successful closing of the real estate transaction.
Home Inspection:
- The buyer usually conducts a home inspection to identify any issues with the property.
- Negotiations may occur based on the inspection results.
Appraisal:
- The lender orders an appraisal to ensure the property’s value matches the agreed-upon sale price.
Title Search:
- A title company conducts a title search to ensure there are no outstanding liens or legal issues with the property.
Loan Approval:
- The buyer’s mortgage application goes through the underwriting process for final loan approval.
Addressing Contingencies:
- Any contingencies specified in the contract (e.g., repairs, appraisal issues) are addressed by the buyer and seller.
Final Walkthrough:
- The buyer typically does a final walkthrough to ensure the property’s condition hasn’t changed since the initial offer.
Closing Disclosure:
- The lender provides a Closing Disclosure to the buyer, outlining the final terms of the loan.
Closing Preparation:
- Both parties, along with their respective real estate agents, prepare for the closing day.
Closing Day:
- The buyer and seller sign all necessary documents.
- Funds are transferred, and ownership of the property officially changes hands.
Recording the Deed:
- The deed is recorded with the appropriate government office, officially transferring ownership.
Distribution of Funds:
- The proceeds from the sale are distributed to the seller, and any outstanding debts (e.g., mortgage, agent commissions) are paid.
Handing Over Keys:
- The seller hands over the keys to the buyer.
Change of Utilities:
- The buyer contacts utility providers to transfer services into their name.
Moving In:
- The buyer can officially move into their new home.
It’s important to note that the specific steps can vary based on local regulations, the terms of the contract, and individual circumstances. Working closely with a real estate professional can help navigate these steps smoothly and ensure a successful closing.
This example is for a Pennsylvania transaction.