So you’re under contract. Now what?
Q: What does “under contract” mean?
A: Under contract means that all parties have agreed on the terms of the contract and have signed. The signed contract has been delivered to both buyer and seller. Other terms like binding and pending are sometimes used interchangeably.
Q: What can I expect during this time?
A: You can expect to work with your Realtor to work with you step by step. We’ll help you turn in your earnest money, schedule inspection, negotiate repairs, and coordinate with the attorney, lender, sellers, etc. You can expect the lender and team (including processors, underwriters, etc) to request documentation from you in order to approve you and get you cleared to close. There are many details involved, but check out our buyer’s guide and reach out if you have more questions.
Q: What is earnest money?
A: The earnest money deposit, or escrow deposit, is a “good faith” deposit of money that is offered within the terms of the agreement. In simple terms, it shows the seller that you are serious about moving forward with the purchase of the home. You forfeit this deposit if you illegally terminate the contract.
Q: Do I need an inspection and how much are they?
A: I always recommend a home inspection by a certified home inspector. At the end of the day, paying a few hundred dollars to make sure that you are aware of the condition of the property is worth every penny.
The cost of the home inspection depends on the company you select, the size of the house and if any other additional structures need to be inspected (like a pool, septic, pest, etc.). An average home inspection in this market is usually around $300-500.00
Q: Are there things I shouldn’t do while I’m under contract?
A: You’d want to be sure not to change jobs, purchase large items on credit, purchase a car, or change money around, etc. You want to make sure you’re not having any negative changes in your debt or credit score.
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*Note: this article can also be found on Jazmyne’s Revival at Home website.