After all the negotiations and back-and-forth, the purchase agreement for a property is finally signed. Congratulations! But what happens next?
First and foremost, the signed purchase agreement serves as a legally binding contract between the buyer and seller. It outlines the terms of the sale, including the purchase price, closing date, and any contingencies that must be met before the sale can be finalized.
One of the first steps after the purchase agreement is signed is for the buyer to provide an earnest money deposit. This deposit is typically 1-2% of the purchase price and shows the seller that the buyer is serious about the purchase. The funds are held in an escrow account until the closing, at which point they are applied towards the purchase price.
The next step is for the buyer to conduct a home inspection. This inspection is typically done within a few days of the purchase agreement being signed and allows the buyer to identify any potential issues with the property. If any issues are found, the buyer can negotiate with the seller for repairs or a price reduction.
If the buyer is obtaining financing for the purchase, the lender will begin the underwriting process. This includes verifying the buyer`s employment and income, as well as reviewing the property`s appraisal and title report. The lender may request additional documentation from the buyer during this process.
Once all contingencies have been met and the buyer`s financing has been approved, the closing can take place. At the closing, the buyer and seller will sign all necessary paperwork and the funds will be transferred. The buyer will receive the keys to the property and officially become the new owner.
It`s important to note that the process after a purchase agreement is signed can vary depending on the specific circumstances of the sale. For example, if the property is being sold as-is, there may not be a home inspection. Additionally, if the sale is a cash transaction, there may not be a lender involved.
In conclusion, the signing of a purchase agreement is just the beginning of the process when buying a property. From earnest money deposits to home inspections to closing, there are several steps that must be taken to ensure a successful sale. By understanding what happens after the purchase agreement is signed, buyers can be better prepared for the journey ahead.
