Home Buying Procedures in the Pioneer valley
1. The Buyer signs “Offer to Purchase” which is accompanied by an initial deposit (usually $100.00)2. The real estate agent submits offer to listing agency/agent and handles necessary negotiating for Buyer.
3. Seller signs offer when accepted. If home to be purchased was built prior to 1978, Buyer receives lead paint notification package from broker and signs notification certification.
4. Buyer signs Purchase and Sale Agreement which is accompanied by a full deposit (a minimum of 5% of the purchase price) which is held in escrow until the closing.
• Usual contingencies: obtaining a mortgage, home inspection1 termite inspection and any others requested by Buyer.
• Average time until closing (transfer of title): 45-60 days.
5. Seller signs Purchase and Sale Agreement upon acceptance.
6. Buyer makes application for mortgage at lending institution.
7. Buyer arranges for inspections within ten days of executing with an inspector of his/her choice.
8. Lender orders credit report and verifies Buyer’s employment. If both are satisfactory, lender orders appraisal of property.
9. Lender approves mortgage application and forwards documentation to the closing attorney.
10. Attorney examines the title, orders a survey and coordinates other necessary documentation including tax, oil, water and sewer adjustments.
11. Seller and Buyer contact utility companies to arrange for service to be transferred and continued.
12. The attorney informs Buyer of funds needed for closing.
13. Insurance agent for Buyer arranges for hazard insurance policy to be taken to closing.
14. Buyer normally walks through property with agent prior to closing.
15. Closing is customarily held in the office of Buyer’s attorney or at the Registry of Deeds.
16. Buyer is given copies of the closing statement and other closing documents.
17. Buyer takes possession of home right after closing.
