Mike Street
Ben Mike Call Us: Ben (231) 590-2198 | Mike (231) 645-1723

“Under-Contract”/Closing Process

Once a seller and buyer have agreed upon a purchase price and other sale conditions, and a Purchase Agreement (PA) has been signed, a property is then considered to be “under contract”, or moving towards a closing. Here’s a quick summary of what comes next in the process when financing is involved:

Buyer
  • Applies for a mortgage within 3 days
  • Provides conditional mortgage commitment within 5 days
  • Conducts a home inspection within timeframe on PA (any issues are negotiated in good faith)
  • Lender orders a property appraisal
  • Appraisal and buyer’s financial information are sent to lender’s underwriter (underwriting can take up to 2+ weeks in some cases)
  • When under writer gives final approval of the loan, a closing is scheduled
Seller
  • Provides the buyer with a Disclosure Statement
  • Seller’s agent orders title work through a title company
  • Conducts any township/county-required septic inspections
  • Resolves any issues that “cloud” the clear title before closing