Page 8 - Buyer's Guide

Once an Offer is Accepted ...

Once there is an offer and acceptance, a fully executed Binder with a deposit
check (usually 1%), a pre-qualification letter from a mortgage company, or
proof of funds, the following is considered the standard sequence of events:

Inspections:

You will have a home inspection done at your expense. This should occur within 7 days of the fully executed
Binder. The Inspector will check the condition of the structure from basement to roof, the mechanicals, the
appliances that are to remain as part of the sale, for termites, for lead in all houses built before 1978, for
radon (optional), the septic tank, well, the pool and oil tank if applicable.

Contracts:

Once the Binder is fully executed and before inspections are completed, you will need to hire a Real Estate
Attorney who will represent you at the closing and review the contract forwarded by the Seller’s Attorney.
Within 10 business days, you will need to sign these formal contracts. By that time, any building inspection
issues should be resolved. Upon signing the contract, you will need to write a check for an amount agreed
upon at Binder—10% is a standard Binder deposit. This check is typically placed in the Seller’s Attorney’s
Escrow Account. Contracts are then returned to the Seller’s Attorney for the Sellers to review and sign.

Mortgage Contingency:

There is a Mortgage Contingency involved in most transactions. The mortgage amount is indicated in the
Binder, and again in the contracts. You will generally request a period of 30-45 days for mortgage approval -
this, too, is stipulated in the Binder and the contract. Once you submit an application, which should be done
immediately, the Mortgage Company will contact a licensed appraiser to complete a formal appraisal of the
home you are purchasing. This is most often completed within two weeks of the fully executed Binder. It is in
your best interest to request your Mortgage Broker to order it as soon as possible.

Closing:

The closing is generally held at the Seller’s Attorney’s office. There are times, however, when the lender
requires that a closing be held in the office of their Attorney. On the day of the closing you will complete a
“final walk-through” and will personally inspect the home you are purchasing to see that it is in the same
condition as when you bindered it. If there were repairs to be made as a result of the inspection, you will
want to ensure that they were done according to the contractual agreement. The “final walk-through” is
arranged through the Real Estate Agents involved in the sale. The date of closing was agreed upon during
the negotiating period and is indicated in the contract. The time of closing is usually determined within the
last week of the closing date. By this date you are all packed and ready to go. Except for a few incidentals
that might need your attention, (please refer to your “Closing Checklist”), your buying journey is over and
you have reached your goal. Congratulations, it’s time to celebrate!

Buyer’s Guide

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