Episode 6: First Steps Under Contract
Congratulations! At this point your offer has been accepted and you're on track to purchasing your dream home! It's a time to celebrate, but there is still work to do. Keep in mind, the day the contract is executed is Day Zero. Every deadline in the contract starts from today, and time is of the essence.
The first deadline is the Option Fee. This is paid to the seller within 3 days of the executed date. if you dont pay it you forfeit your option period
The second check is also due within three days. This is for the earnest money. It is due to the title compnay via check, wire transfer, or money order. the seller can cancel the contract anytime after three days until you have paid your earnest money.
Lastly, you must schedule your inspection. It is best to have your inspection done before your option period is over so you still have leverage to have certain repairs made.
you also want to keep in contact with your lender throughout this time, to make sure that closing will come without a hitch. Additionally it is a good idea to talk to an insurance agent soon after going under contract. They will be able to give you some extra information going into the inspection about what claims have been filed on the house that you would not otherwise have.
Your agent will be there with you each step of the way throughout this process to walk you through. The best thing you can do is to understand your responsibilities and the timeline you are under. If you can do that, your transaction will go smoothly.
