Under Contract! Now What?

Congrats, you have a contract to purchase! In Tennessee, the document a REALTOR(R) will use to prepare your offer is called Purchase and Sale Agreement. There is a version for New Construction, Residential (existing), Land/Lots, and Commercial properties to cover specifics that most apply to these types. Each of these specifies price being paid, address and description of property, what will be included in the sale, which type of payment will be rendered (example cash or loan), contingencies such as home inspections, appraisals and timelines for each, when the sale will close/be completed, penalties for breach, and any other specifics that buyer or seller agree to - such as purchase being subject to sale of buyer's current home.  Once buyer and seller reach an agreement this Purchase & Sale Agreement is bound, it is locked in and legal and is now what will be referred to the contract. 

Once in contract, some standard steps in order would be: 

1. Loan Application: Your lender will have an application for you to apply for your loan. This will happen within 3 days of the bound contract. Your agent will notify listing agent.
2. Earnest Money: Pay earnest/trust money to the designated holder (typically the title company)  and provide a copy of the receipt to the listing agent.
3. Inspections: Schedule and perform any desired property inspections, with any entry scheduled through listing agent. These inspections may include a typical home inspection, termite, HVAC, chimney or radon. Further inspections may be required and a contract extension to allow time can be requested so you as the buyer can do your due diligence.
4. Repair Negotiations: After inspections, request repairs or negotiate resolutions, both parties must agree to move forward, or notify your intent to proceed based on inspection findings. 
5. Appraisal and Lender Requirements: Notify when the appraisal is ordered and the associated fee is paid, usually within 14 days. During this period, your lender will request various supporting documents from you and require you to select a homeowner's insurance carrier.
6. Appraisal Evaluation: The appraiser will evaluate the property and relay the findings to the listing agent. Depending on the results, there may be negotiation or repair requests. There can be appraisal required repairs where typically the seller more often than not will complete in order to move past that lender required hurdle. 
7. Clear to Close: If the appraisal is satisfactory and underwriting requirements are met, your lender may issue a "Clear to Close." This signifies that the loan is ready for final processing. The title company will collaborate with your agent to prepare the settlement statement, and utility services should be transferred for activation on the closing day. Sometimes they want a copy of contract to finish transferring of utilities but not always, 
8. Final Inspection: Conduct a final inspection with your agent to ensure the property's condition aligns with the contract terms, with normal wear and tear excepted. we prefer this to be the day before or even the day of. Verify that all agreed-upon repairs have been completed. Confirm the property is in the same or better condition & document the findings in a Buyers Final Inspection document.
9. Closing Day: If all goes smoothly and no extensions are needed, attend the closing at the title company at your scheduled time. Sign the required documents and receive your keys. If funds need to be wired, ensure you have the necessary account information. Afterward, you will receive copies of all documents and your deed by mail. For any further questions, Jodi or Tara are available to assist you.