Earnest MoneyEarnest money is a deposit made by the buyer as a show of good faith in a transaction. Typically the amount of earnest money required to secure the closing is agreed upon and outlined in the contract agreement. It's important to make sure that you have your earnest money delivered in a timely manner according to the contract agreement terms to avoid being in breach.
Property InspectionsOnce a contract is executed the clock starts for the inspection period. It's important to schedule all inspections in enough time for the inspector to be able to complete the inspection, produce and deliver a report prior to that deadline. By having an inspection done, you're removing any potential risk of unforeseen future maintenance issues with the home, so this is a very important step to follow through with.
Lender DocumentsAs soon as you have an executed sales contract, you will need to communicate with your mortgage
lender so that they will start the mortgage process. Get any requested documentation to them to prevent timeline issues. Check in with them to verify that they are on track. Your REALTOR® should help you with this as well. If a lender does not complete the loan process in a timely manner, it can cause you to be in breach of contract by not closing on time.
AppraisalOnce you have cleared the inspection process, your lender will need to order a home appraisal to verify that the value of the home is worth the loan amount requested. More than likely you'll be responsible for the cost of the appraisal, so it’s best to wait until after you have completed the inspection process. Just be aware of the contract timelines for the appraisal.
Homeowners Insurance & WarrantiesMost lenders require you to have a Homeowner’s Insurance Policy for the property you're buying. Some mortgage companies can bundle a policy in the loan, but if not you will want to shop around and choose a homeowners insurance provider and policy that works best for you. Once you have the policy in place, let your lender, REALTOR®, and title company know.
If in your purchase agreement the sellers have offered an allowance for purchasing a home warranty, you’ll want to shop for home warranty companies as well. Once you have found the right home warranty provider, be sure that the title company knows who you plan to use.
Stay tuned for next week's blog (part 2) for more timelines to be aware of leading up and including closing on your Lake of the Ozarks real estate purchase. As always, for all of your real estate needs, trust the most experienced real estate team at the Lake of the Ozarks to guide you in the right direction!
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