#18 Getting Close to an Actual Contract



With the guidance, insights and expertise of your team of professionals, you are getting close to final decisions!   You and your Loan Officer have mastered all the preps, you have successfully acquired your loan Pre-Approval, you selected your Residential Realtor and you now have specific properties in mind.   You are getting close to an actual Contract of Purchase.

At this point in your home purchase process, it is very important to closely communicate with your Loan Officer and your Realtor.    They need to know where you stand on properties viewed, preferences and priorities and all the questions or concerns you may have.   It is not the time to keep serious concerns to yourself .

Once you have selected a specific property, your Residential Realtor will work closely with you in making your Offer – the Purchase Contract --to the Seller.  The Seller will then accept the Offer, as is, or counter back with requested changes.   Once both parties agree on the price and terms of the contract, then the time frame for inspections begins.

 Doesn’t that sound simple, easy and quick?    The reality may go smoothly and efficiently, but simple, easy and quick is probably not realistic!   The details are dense, and must cover all stipulations of the prospective sale accurately, from both parties understanding of those stipulations.

It is not unusual for a contract to greatly detail the agreed upon changes, responsibilities, conditions, exceptions, additions, etc., that were verbally discussed in the investigative stage of the specific property.   Your contract may include stipulations to “negotiate” certain factors, and mitigate certain others.

Any and all Inspections must take place within specific time frames.   These stipulations may vary depending upon the type of property (city limits, rural, farm, etc.) and various compliances.   Your Residential Realtor will know exactly how to move through and craft the characteristics of your particular contract.

When an offer is accepted, it will be imperative to review everything!   There are lawful time limits within which changes may be negotiated, and in which you may even withdraw the offer.   Costs previously alluded to now kick in, and it is important to re-clarify who is responsible for what.
Ask questions and make sure the language of the contract and all of the content is clear to you.  When you are a first time buyer and the territory is new to you, it’s a mistake to move forward hoping things will be clear “later.” 

Lean on your experts!   You aren’t a lending expert or a realtor!   You are the person buying a home – perhaps for the first time.   No one is going to assume you know all the ins and outs.  Your professional team understands that no question is unimportant.

Your Loan Officer is your best resource when it comes to any financial factor that must be considered when there is a specific property under consideration.   Costs that are outside the parameters of your Pre-Approved loan must be evaluated and perhaps reconsidered.   Over-extending a commitment may constitute a change that could jeopardize your Pre-Approval.  That’s another big reason to maintain good communication with your Lender and avoid mistakes with consequences.

In this stage of your home purchase process, Insurance comes into the picture.  You will be accurately guided by both your Loan Officer and your Residential Realtor concerning what Insurance is needed, and why, and they may furnish appropriate referrals.   It is easy to see that the closer you get to owning that home, the more essential layers of expertise are required.   In no time at all, the Title Company joins the team!

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