Page 22 - Ouray Real Estate

Ouray Real Estate Corporation
What happens when you’re under Contract
Once the sellers accept your offer, you will enter the escrow period. There are two important elements to this period. The first is you will arrange financing if you are planning to use a loan to purchase the home. Your lender will start the process of getting the final approval for your loan. They will work with escrow to get the data they need about costs and present you with a Good Faith Estimate of your costs and terms of the loan. The lender will also order a formal appraisal of value. The appraisal value must match or exceed the amount you offered for the home or the lender will not be able to lend the full value you are expecting. The next section will discuss contingencies in more detail.
The other major portion of the escrow period if that this is the time for you to do your final due diligence and investigations of the home condition. The sellers will provide you with a complete disclosure of issues they are aware of with the home and neighborhood for you to review. Until you remove contingencies, you can still cancel the purchase without any financial penalty, so this is the time to check out the community, the home and the other factors that will affect your enjoyment of the property.
At the end of the escrow period, you will have made multiple small decisions which all lead to closing on your new home.
22