Step 3: Under Contract to Purchase a Property!
We have submitted a Winning Offer & now we have an Executed Purchase Agreement—that’s exciting!
Understanding the Purchase Agreement: Loom Video Overview of the Contract
https://www.loom.com/share/9c1bd4396f0a45bfabf6011864ccdc92
RI Real Estate Forms (you can see pdf of all the forms including the contract, offer, Addendums, etc)
Once the contract is signed by both parties what comes next?
Here’s a simple Contract to Close Infographic
This video goes through the following steps for what happens once we have a signed Purchase Agreement (contract) in place: https://www.loom.com/share/94bd3235903a4145a99f63da7e76818b
Purchase Price: $
Deposit: $
Mortgage Commitment Deadline:
Closing Date:
Inspection Deadline:
To Do List:
1) Submit your Escrow Deposit:
Text me a photo of your filled out deposit check (personal check out of your account): addressed to {listing brokerage or escrow agent}
Mail or drop off at: {location listed for listing brokerage}
2) Schedule your home inspection:
Our deadline to complete the Inspection Contingency is ____. That means we have to have any negotiations resolved or terminate the contract on or before that date. Here are my Inspector Referrals
3) Fill out your Loan Application:
Sign all of the documents ASAP that your lender sends--I will send the fully signed contract to the lender (will cc you) & they will get you into their system. They will need updated bank statements, pay stubs, etc. Some of it can feel pretty redundant but if they request something please get it to them right away. If you have any large deposits ($500 or more--cash or check) they will need to know where that came from & be able to track it. If you have any side jobs that take cash I recommend that you don't make additional deposits without first discussing with your lender. Do not make ANY changes to your current credit or payments without discussing with your lender. Do not buy anything that's a large purchase ($1k or more) without discussing with your lender. Don't make any changes to your employment without discussing with your lender....you get the picture :)
4) Select a Closing Attorney:
I recommend Hugh Barry as your closing attorney (or Title Attorney--each lender includes it differently). He is fantastic to work with. You'll likely need to enter their contact info into the lender documents otherwise your lender will assign a random person to you which we don't want.
hughbarry@cs.com
400 Reservoir Ave Suite 1A Providence, RI
5) Set up your Home Owners Insurance:
Contact Insurance providers to get that moving, I especially prefer John LaPointe as his rates are great & his customer service is top notch. You can wait until after the home inspection to do this if you prefer.
6) Set up your Utilities:
For gas & electric you’ll call National Grid a few days prior to your closing to set up the service in your name (it’s easier to call than to set it up online). In most towns the water & sewer will be set up in your name once the deed is recorded—you don’t need to do anything for that. However, in some communities–like those in Bristol County (ex Warren & Bristol)–you’ll need to call Bristol County Water Authority to set up your service about one week prior to your closing.
7) Scheduled Closing & Final Walk through:
Once we have your mortgage commitment we will be waiting for the lender to issue “Clear To Close” & issue the final closing disclosure. Once the attorneys have this info & are satisfied with what they need on their end (final Title & Deed, seller Mortgage payoff, all liens are discharged, final water & sewer bills, etc) they will schedule the closing. There are SO MANY moving parts behind the scenes that you don’t see! All of these moving parts have to come together–ideally on the target closing date that we put on the contract but many times there are delays. They will reach out to you with a closing date & time once they are able. You may even get that info before I do! If you have any scheduling conflicts please let me & the attorney know upfront (ex. A planned vacation or job responsibility). You’ll need to bring a certified bank check for the amount that the attorney informs you of—your down payment & closing costs based upon the final closing disclosure. Once we have the closing date & time we can schedule the final walk through at the property. Often this happens an hour before the closing.
Have questions–let’s chat!