Home Buyer Timeline & "To Do" List
Meet with Brad Hartz.
- Discuss Agency and sign Agency Disclosure form.
- Talk about what a Buyer Agent can do for you.
- Go over your needs and wants regarding housing.
- Make an appointment to see properties in the area that fits your needs and wants.
- Determine your purchasing power with Mortgage Broker.
- Obtain a pre-approval letter.
DAY 1
- Complete and sign an accepted OFFER TO PURCHASE – The offer to Purchase is a standard document and details the total amount to paid, broken down by the amount to be financed, and the amount to be paid in cash. Also specified is the date of the closing (day of transfer of deed from the seller to buyer, also called the passing of papers). A small deposit, usually $1000.00 is attached to the offer as consideration. If the seller accepts the offer, this amount is held in escrow toward the total cash payment. Attached to the offer are standard contingencies. A letter of pre-approval is also attached.
- Prepare to begin Meeting contingencies and conditions of the offer – Contingencies usually include: inspection, pest and mortgage. The buyer has a period of time, usually 3-5 business days from the accepted offer to have the property inspected by a professional building inspector.
- Make sure you have a legible copy of the fully signed offer.
DAY 2
- Select an attorney.
- Make sure you have the Web Site for information about Home Inspectors (www.state.ma.us/reg/board/hi) or the handout from the Board of Registration of Home Inspectors.
- Set up a date and time for inspection. Give information to your Buyer’s agent. YOU MUST ATTEND THE INSPECTION.
- Have a home inspection. Allow sufficient time in your schedule. NEVER leave an inspection before it is completely over. Most inspections last a minimum of 2 hours and could, based on the size of the property, last up to 6 hours! Get a copy of the inspection report.
HOME INSPECTION SUGGESTIONS
- ARRIVE ON TIME. Make sure to introduce yourself to the inspector and get their business card.
- STAY WITH THE INSPECTOR AND LISTEN. Make sure to see what items that inspector comments about.
- Keep notes of any serious problems that are found during the inspection so the sellers can be informed right away.
- CONTACT YOUR BUYER’S AGENT RIGHT AWAY REGARDING CONCERNS ABOUT THE INSPECTION OR THE REPORT.
- IF YOU DECIDE TO HAVE A RADON TEST- If you or the inspector are not available to pick-up the test canisters and want your Buyer’s agent to pick them up, you must sign the RADON PICK-UP RELEASE FORM.
- A HOME INSPECTION IS A LEARNING EXPERIENCE (A WALKING CLASSROOM TO LEARN ABOUT YOUR NEW HOME) AND NOT JUST A TOOL TO RENEGOTIATE THE OFFER. REMEMBER… THERE IS NO SUCH THING AS A PERFECT PERSON AND THERE IS NO SUCH THING AS A PERFECT HOUSE (EVEN FOR NEW CONSTRUCTION OR NEW REHAB).
- IF THERE ARE ANY PROBLEMS DISCOVERED AT THE HOME INSPECTION AND YOU WISH TO RENEGOTIATE:
* All negotiations need to be in writing in the form of a letter with an itemized list of concerns and a copy of the inspection report. ANY RENEGOTIATIONS MEANS THAT YOU ARE WITHDRAWING YOUR ORIGINAL OFFER TO MAKE A NEW OFFER.
DAYS 9-15
- Sign Purchase and Sale Agreement (with second deposit) – approx. 2 weeks from date of accepted offer – The purchase and sale agreement is usually prepared by the seller’s attorney and reviewed by the buyer’s attorney. Additions, changes and addendums may be added. This is the actual agreement between the seller and buyer detailing the terms of the sale. The P&S is prepared following an acceptable inspection and usually takes about a week to prepare. At the time it is signed, another deposit is paid by the buyer and is also held in escrow until the closing. This is the final document needed by the lender to process the loan. PLEASE REMEMBER:
- Make sure to fully read the P & S and note any important issues or contingencies that must be met prior to closing. Write down the dates for the contingencies and keep track of them!
- Make sure to receive an original fully signed Purchase & Sale Agreement.
- Make sure to find out whom you should make out the P&S deposit to.
- Carefully check the check for proper amount and date. If closing is to happen within 14 days of signing of P&S, check must be CERTIFIED or BANK CHECK.
- Make sure you have a photocopy of the check.
- Complete Mortgage Application – within 2 days of signing Purchase and Sale - Provide Lender with all documentation and verification.
WEEKS 3-4
- Keep in constant touch with Lender until you have a commitment.
- Sign and return the Commitment Letter – approx. 4 weeks from date of accepted offer.
- Comply with any conditions of Commitment Letter.
WEEKS 5-8
- Obtain Insurance Binder on property.
- If Condo- Make sure to arrange for homeowner’s policy prior to closing (not needed for closing).
- If not a condo- Make sure you have made arrangements to purchase a homeowner’s insurance policy and bring to the closing the policy along with a paid receipt. An insurance certificate with the lender’s name and information must be brought to the closing.
- Make sure to have movers arranged and that you are fully aware of the vacancy requirements set forth on the P & S.
- Obtain final closing costs. Call the Bank attorney to get the amount of the check and to who the check should be made out to. Check needs to be certified, cashier’s or treasurer’s check
- Notify Utility Companies – turn on service or change name on account.
- Do final walk-thru inspection of property – This is a final inspection of the property by the buyer to confirm appropriate condition of the property. The walk-through needs to occur once the property is vacant prior to the closing. If applicable- take final reading of oil tank.
- Attend closing with required money (bring your drivers license). Pass papers and receive the keys.
- Apply for residential exception (if applicable)
- Carefully inspect the homes and select the one you love.
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