The purchase agreement is a legal arrangement between a potential buyer and the property’s owner or seller. To streamline the process, it is best to keep records of everything and to stick to a pre-determined schedule.
An unbiased third party such as a title company or an attorney will be selected to act as the closing agent. The unbiased agent holds all funds in escrow and researches the complete record history of the property. This ensures that the title in question is free and clear of restrictions.
Once the seller accepts your offer you will need a licensed property inspector to check the property for issues including the roof, structure, HVAC, plumbing, electrical and more. One of two things can happen depending on the outcome of the inspections. If each step in the process is successfully met, you move to closing or after review request for renegotiation of terms and price can be made.
After the inspections are met and you move closer to closing, your lender will require an appraisal to help determine the amount you can borrow to purchase your home. Appraisers are specialized in determining the value of properties based on a combination of square footage measurements, building costs, recent sales of comparable properties, operating income and more.
After the appraisal is completed successfully completed you can close.
Finally, the closing agent will furnish all parties with a settlement statement that summarizes the details of the purchase agreement. All parties including the closing agent will read and sign the documents and this completes the process.
After closing is complete you will need to get all home services installed and utilities turned on or switched over to your name. Now you are all set to move in to your new home!