Part 4 of 4
In the prior blogs in this series we discussed several aspects of the loan process; how a buyer needs to maintain their credit score, and how the home will go through an inspection and appraisal process. This part entails a seemingly obvious but sometimes hard to stick to part of the process, namely, expediency. The contract process and obtaining loan approval can be stressful. It is important to try not to become overwhelmed or fall prey to procrastination, ultimately that could cost you the home you are trying to buy!
Contracts typically have a clause that states, “time is of the essence.” This is often elaborated upon, explaining that all parties agree to work together amicably and towards the common goal of closing the home. The contract will have several deadlines written in, one will be a date by which the buyer needs to have obtained mortgage approval (this is different than the initial pre-approval letter issued by the bank), and one with an estimated closing date. These dates are not necessarily set in stone, but they should not be disregarded as mere suggestions. The contract can be cancelled if one of the parties blatantly disregards the dates and is not doing their part to work towards the closing. For the buyer, this means getting all necessary loan paperwork to the bank. For the seller, this means signing all contracts and addendums, and making any necessary changes to the home.
Completed homes are typically under contract for about thirty days prior to closing. If a home is under construction, the contract could span over a course of months. In this case, the closing date is more of a moving target as unforeseen events can alter the timeframe of the construction process. It is the builders’ job to keep the buyer in the loop, setting an accurate expectation of how long the process will take and of any changes along the way. Even though a home under construction can take longer, it is imperative that the buyer maintains their end of the agreement, remembering that time is of the essence for any outstanding paperwork they may have or tasks they may need to complete. While the process can stressful, the end goal of closing on your new construction home will be well worth the hassle of any bumps along the way!
Shop these great Charleston area communities to find your new home today!
This blog is based on Fox News’ article “Four ways a real estate deal can die,” by Adam Verwymeren.
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