The first step of the home buying/selling process is the submission of an offer from a qualified buyer to a seller with proof of financing (see Recommended Lenders for more information). The seller can choose to reject, accept, or negotiate the offer. (Note - this is the first of three sets of negotiations in the home buying/selling process). Once terms have been accepted by both parties, the contract is considered "Executed" and the clock begins!

Days 1-10 

The buyer now has an option period, as negotiated in the contract, to perform "due diligence" - which means that they can hire an inspector, a contractor, consult with the city for any zoning questions, or ask any professional any other questions that may concern them for the property (i.e. roof, foundation). Typically this process lasts between five and ten days. The most typical new found information in this process are any repairs that may need to be made to the property. VA loans also have some additional inspection requirements, such as WDI (Wood Destroying Insects). If repairs are required, this is the second negotiation of three in this process.  Once repairs have been negotiated and accepted by both parties, the option period is over and the sale is considered "Pending".

Days 11-21

In the background of the option period above, your lender and title company have been working on your behalf to get funding and a clear title for the purchase. The lender will order an appraisal to ensure their loan at this point. If the house appraises at or above the purchase price, congratulations! That is fantastic news, and will allow the loan to proceed. If the house does not appraise, a third negotiation is now required. The buyers and sellers will have to come to an agreement, or the contract will terminate. When this hurdle is surpassed, the final negotiation is complete. Whew!

The final step is waiting for the "Clear to Close" from the lender. Three days prior to closing, the buyer and seller will receive a CD (Closing Disclosure) outlining the final fees, cash required to bring to closing, or cash that will be paid to the seller. 

Day 30

CLOSING DAY! The sellers and buyers will each meet at the title company (at different times) to sign their parts of the contract and to bring required closing fees. When all the paperwork is processed, the lender will "fund" the loan - which means the loan has been officially created for the buyer, and the settlement funds are deposited to the seller. If it is a morning closing, funds are usually seen that afternoon. If it is an afternoon closing, the funds may not make it until the next morning. Then, the key is officially given to the buyer. WELCOME HOME!