What Happens After You Sign A Purchase Agreement?

Have you ever wondered what happens after you sign a purchase agreement? It’s a question that often goes unanswered and is left to speculation. After all, it’s easy to assume that once you sign the deal, your job is done. However, this couldn’t be further from the truth. In reality, there are several steps that must take place in order for the transaction to be legally completed. From title searches and closing documents to inspections and loan approvals, understanding what happens after you sign a purchase agreement is key in ensuring a smooth and successful transaction. In this blog post, we will explore what goes into the process of completing a real estate purchase agreement and how each step works together to make sure everything goes as planned.

The purchase agreement is signed

The purchase agreement is signed and the deal is done, right? Not quite. There are still a few things that need to happen before you can officially call yourself the new owner of the home. Here’s what happens after you sign a purchase agreement:

1. The earnest money deposit is paid.
2. The loan is approved.
3. The home inspection is completed.
4. The appraisal is done.
5. The title search is conducted.
6. The loan closing takes place.
7. You get the keys to your new home!

The deposit is paid

When you sign a purchase agreement, the deposit is paid to the real estate company handling the sale. This deposit is held in escrow and goes toward the total purchase price of the home. The deposit is non-refundable, so be sure you are committed to buying the property before signing a purchase agreement.

The loan process starts

The loan process begins when you sign a purchase agreement. The purchase agreement is a contract between you and the seller that outlines the terms of the sale. The purchase agreement will include the price, the closing date, and any contingencies.

Once you have signed the purchase agreement, you will need to apply for a loan. The loan application will ask for your financial information, including your income, debts, and assets. The lender will also pull your credit report.

After you have applied for the loan, the lender will underwrite the loan. This means that they will review your financial information and credit report to determine if you are a good candidate for the loan.

If you are approved for the loan, the lender will send you a commitment letter. This letter outlines the terms of the loan, including the interest rate, monthly payment, and term length. Once you have received the commitment letter, you can shop around for a better deal if you wish.

Once you have found a lender that you are happy with, you will need to sign a promissory note. This is a legal document that states that you agree to repay the loan according to the terms outlined in the commitment letter.

The final step in the loan process is closing on the loan. This is when all of the paperwork is signed and finalized and you officially become responsible for repaying the loan.

The appraisal is ordered

After you sign a purchase agreement, the next step is to order an appraisal. The lender will order the appraisal and schedule it directly with the appraiser. The appraiser will come out to the property and complete a detailed report on the value of the home. This process usually takes a few days.

The home inspection is scheduled

Once you have signed a purchase agreement, the next step is to schedule a home inspection. This is an important step in the home-buying process as it will give you a thorough evaluation of the condition of the property. The inspector will look for any major defects or repairs that need to be made.

If the home inspection reveals any major problems, you may be able to negotiate with the seller to have them fix the issues before closing on the property. If they are unwilling to do so, you may decide to walk away from the deal altogether.

Once the home inspection is complete and you are satisfied with the condition of the property, you will move on to the next steps in the home-buying process!

The final walk-through is completed

After you’ve signed a purchase agreement, the final walk-through is completed with the sellers before closing. This is to ensure that the property is in the same condition as when the offer was accepted, and that any agreed-upon repairs have been made. Once everything is confirmed, the escrow period begins and you’ll be one step closer to owning your new home!

Closing day arrives

It’s finally here – the day you’ve been waiting for (and working towards) is finally arrived. The seller has signed the purchase agreement and the keys are officially changing hands. So, what happens now?

First, it’s important to celebrate this milestone! You’ve worked hard to get to this point and you should be proud of your accomplishment. Take a deep breath and enjoy the moment – you deserve it.

Now, it’s time to start thinking about the next steps. There are a lot of details to take care of in the coming days and weeks, so it’s important to start planning and organizing now. Here are some things you’ll need to take care of:

– Arrange for utilities to be transferred into your name
– Set up insurance for your new home
– Schedule a moving date
– Notify your employer of your new address
– Change your address with the post office
– Create a budget for your new home
– Start packing!

This is just a short list of some of the things you’ll need to take care of – there may be other items specific to your situation that you’ll need to take care of as well. The most important thing is to stay calm and organized throughout the process. If you do that, everything will fall into place and you’ll be enjoying your new home before you know it!

Conclusion

Signing a purchase agreement is an important step in the process of buying a home. Knowing what happens after you sign this document can help reduce the stress that comes with making such a big decision. After signing, it is important to keep track of any deadlines or contingencies so that you don’t put yourself at risk of losing your earnest money deposit. It’s also important to make sure all inspections are done and paperwork is filed correctly, so be sure to stay organized throughout the process!