Step 7: Mutually accepted contract? Now what?
Often contracts are accepted verbally by the seller’s agent first while signatures are gathered from the sellers. It can take 1 – 2 days for all parties to sign and return the contract so be patient. Until we have a fully executed contract (which means everything has been signed by both the sellers and the buyers) we do not have mutual acceptance. Therefore, it’s urgent that a signed contract be received by all parties asap.
Congratulations you now have a mutually accepted contract on a house, but now what? Once a signed contract is received, several things need to happen:
1. The contract needs to be sent to escrow. They will review the mutually accepted contract and open a file. We handle this for you - so no worries.
2. The contract needs to be sent to your mortgage lender. This lets your mortgage lender know that you’re under contract and starts the process for getting you fully approved for the mortgage (remember, right now you’re only pre-approved). Be sure to respond promptly to your mortgage lender. They will ask you to fill out a lot of paperwork. Some mortgage lenders joke it’s like getting a financial colonoscopy. Unfortunately, it’s not optional; it’s required and the quicker you can fill it out and get it back to them, the better.
3. You need to schedule the home inspection. You can use any licensed home inspector you choose. If requested I will send you the names of three Home Inspectors that past clients of ours have used. This needs to be done asap.
4. You need to write and drop off the first earnest money check. The earnest money check is made out to the escrow company and is either in the form of a personal check or a certified check (we’ll let you know which one you need). Usually it is dropped off at escrow within 2 business day of contract acceptance. When you drop it off make sure you ask for a receipt.
After the above items have been done, we’ll email you every few days with an additional next step. Think of it as our friendly way of giving you homework to ensure a smooth transaction and to help you make sure everything gets done on time.
Questions? Call me at 253-988-8252