The Steps from Contract to Closing When Selling a Home
If selling your home in Clarksville TN, the job doesn't stop for the agent once the contract is accepted. When the contract has been signed by the buyer and seller, the agent binds the contract and makes sure the lender and the clients have complete signed sets of the contract. This will be the road map to the closing. There can be as many as 25 to 30 pages that are in the contract package.
What happens next? A cash sale can close in a matter of a few days. If the sale is based on financing the lender will start to work for the buyer to secure that financing. Title search is ordered early in the process by the lender to make sure the title is clear.
The sellers agent should be monitoring each step in this process to make sure all is moving forward. Much of the work will be the responsibility of the buyer, buyer's agent or the buyer's lender. The seller should be kept informed of what is happening along the way.
- The buyer should take immediate steps to apply for his loan. Lenders in Clarksville TN require an upfront application fee to cover the cost of the appraisal and other out of pocket expenses. This can be several hundred dollars. The lender will gather information from the buyer and information on the property to order the appraisal.
- The home inspection ordered by the buyer's side of the transaction if one was requested in the sales contract. Again in Clarksville, 99% of the time the inspection is the buyer's expense. There is a stated inspection period and time is of the essence. Items that are inspected during this period are termite, HVAC, septic, home inspection, swimming pools, well water, radon, lead or structural.
- Repair issues that surface from the inspections are negotiated between the buyer and seller unless the property is sold as is and it was stated that no repairs would be done by the seller and the inspection is just a matter of information. Some contracts allow for termination of the contract if the buyer does not like the home inspection results.
- The lender is working gathering needed information from the buyer, has ordered the appraisal of the property. This can take from one week to 4-5 weeks. The purpose of the appraisal is to assess that the value of the home using comparable market data and property data. This is to substantiate the loan value and the security value of the home for the loan. Just so you know, the appraiser works for the lender not for the agent or the buyer.
- The lender continues with the processing of the loan verifying information provided by the buyer. The purpose is to see if the buyer is a good credit risk and has the ability to repay the loan amount being requested. The property needs to be substantiated as good collateral for the loan as well. This is done through the appraisal process.
- Buyers need to be securing their homeowners insurance so documentation can be provided to the lender and be ready for the closing. If a home warranty is part of sale it is ordered so it will be in place as of closing date.
- Meanwhile, the seller is still maintaining the property (keeping the lawn moved) and making plans to move. If repairs were agreed to be done by the seller, these should be in the works so they will be completed by the required date. The closing company will ask for information from the seller in regards to liens, ownership and current mortgage company account numbers. They will also need a forwarding address, contact phone numbers and social security numbers of the sellers.
- A day or two before closing, a walk through is done by the buyer so the buyer can check out the house before closing takes place. The purpose is to see that it is in the same condition or better than when the contract was signed.
- When loan approval is given and the final Closing Disclosure is sent to the buyer and accepted, closing is set for a minimum of 3 days to comply with the TRID time period for notification. The time of the closing is usually set to accommodate both parties.
Closing day in Clarksville is the day the keys are passed, utilities transferred and possession is given to the buyer. The seller has vacated the home and will receive proceeds at the closing. This is when the title is transferred to the buyer and the buyer is signing for the loan.
As you can see there is a lot of work going on behind the scenes. It is vital that the seller's agent stay in close contact with the buying side of the transaction so he can inform the seller of the progress and to know that everything is moving forward according to the contract.
When you need a Clarksville TN Real Estate agent to guide you through the selling process, give me a call. Contact Debbie Reynolds at 931-320-6730 or click on this link to start the process.
it would be my pleasure to assist you!
"The Real Debbie Reynolds"
931-920-6730 Office or 931-320-6730 Cell
Berkshire Hathaway HomeServices-PenFed Realty
2503 Wilma Rudolph Blvd., Clarksville, TN 37040
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