NOW THAT YOU ARE UNDER CONTRACT, HERE’S WHAT TO EXPECT NEXT.!

YOUR GUIDE TO!

THE CLOSING PATH!

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CONGRATULATIONS YOU’RE UNDER CONTRACT!Whether selling or buying, going ‘under contract’ is a big step along the way to reaching your goals. In this guide, we’ll explain some key terms and highlight potential obstacles

from here to the closing table.!

IMPORTANT TERMS WHILE UNDER CONTRACT!

Due Diligence!During this period, the buyer can perform any inspections (see below) and may seek to

negotiate an amendment to the agreement. Buyer also has the right to terminate the

contract during due diligence and receive a full refund of all Earnest Money. Seller may

continue to show the property and solicit back-up offers.!!Inspections!Buyer, at Buyer’s expense and risk, may inspect, examine, test and survey the property

and surrounding neighborhood conditions.!!Special Stipulations!Requests made by either party that must be met or removed prior to moving forward.!!Financing Contingency!Often times Buyers request a period of time to finalize all financing details prior to closing. Buyer may terminate during this time without penalty by providing a Loan Denial Letter.!!Appraisal!Lenders typically require an appraisal of the property prior to loan approval. Buyer has the

right to submit an Amendment to Reduce Sales Price, if the appraised value is less than the purchase price.!

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LOAN PROCESS!The buyer is responsible for most of the work during the loan process and should provide documents and information requested by lender in a timely manner. However,

some loans require sellers to make repairs prior to final approval. Buyer should not

make any other large purchases (cars, boats, etc…) while in the process of buying a home.!!An appraisal is a key part of the loan process and does not require the seller to be home to complete the evaluation.!

5!

It is common for inspectors to find items that need maintenance on the property, because no house is perfect. Most repairs or replacements are addressed via

Amendment to Agreement and typically require seller to have work performed in a

workmanlike manner prior to closing. Often in the inspection and repair negotiation stage, a buyer and seller will negotiate money instead of repairs, applied to the closing

costs or sales price.!

INSPECTION & REPAIRS!

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!  Buyer should schedule a final walk-through to confirm repairs and final clean are completed by seller prior to closing.!

!  Path & Post agent will confirm the lender documents and instructions have been sent

to the closing attorney.!!  Buyer and Seller should review a copy of the Closing Statement (HUD-1 form).!!  Buyer should arrange to wire transfer the money to the closing attorney.!!  Seller may arrange to receive funds as a wire transfer or check.!

CLOSING DETAILS!

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WHAT NOW!

Schedule Dates !Place a reminder of important dates in your personal calendar. What day does

due diligence expire? What day is the financing contingency up? When should

you begin packing? Don’t forget to schedule time off to attend closing. !!There are lots of moving parts to get from contract to closing, it’s important that you plan ahead. As always, rely on your Path & Post specialist to guide you

through any confusion or concerns you may have along the path.!