Albuquerque First Time Home Buyers Guide Part Five: From Contract to Close

Finding the right home and having your offer accepted is a big step towards buying your next home, but it's not the only one. In fact, there are many more important steps thatmust happen before you'll actually own your new home. Here is a brief description of each step.

Getting from Contract to Close on Your New Albuquerque Home

•

1) Escrow is Opened

. The seller's agent sends the fully executed (signed)contract and any counteroffers, amendments and addendums to the Titlecompany. The buyer's broker takes the earnest money check to the titlecompany. The title company will be cashing the check and putting the finds intoan escrow account. Once the earnest money check is turned in to the titlecompany the house listing is changed to pending status in the MLS and it shouldno longer be shown to other prospective buyers.

•

2) Property Disclosure, Tax Levy Disclosure and Non-Foreign Seller Affidavit are Read and Signed

. Sometimes these documents are read andsigned at the time the offer is written. Other times they are done within three firstthree days after the acceptance of the offer. If anything on the disclosurestatements raise concerns the buyer's broker can ask for clarification or ask for acure (repair) on an "Objections, Waivers and Resolutions" form.

•

3) Inspections are Ordered

. This should be done on the first day after the offer is accepted. The inspections should then be performed within the first 7 to 10days so there is plenty of time for any repairs to be completed. There are manytypes of inspections a buyer can request, but at the minimum every buyer shouldrequest a Full Home Inspection and Wood Destroying Insect (Termite)inspection.

•

4) Loan Application is Completed

. There is short window of time-usually fivedays-for you to complete the loan application process if you have not alreadydone so. If it has been awhile since you were prequalified then the lender mayask for more recent pay stubs or new tax forms to be provided at this time. Other supporting documents may be asked for at any time during the process,sometimes up to the day before closing.

•

5) Inspection Reports are Received and Repairs are Requested

. Once theinspection reports are received we will have three days to read through the reportand write up our request for repairs on the "Objections, Waivers and Resolutions"form. The seller then usually has three days to consider which repairs they agreeto perform. If the amount of repairs is less then the repair allowance negotiated inthe contract then the seller is obligated contractually to perform the repairs. If theamount of repairs exceeds the repair allowance then buyer and seller need tonegotiate which repairs will be completed and who will pay for them.

•

6) Title Company Sends the Title Binder

. The title binder or title commitment isusually completed around the 10 to 14 day mark. The title binder alerts everyoneif there are any problems with transferring "clear" title. Once the title binder isreceived the buyer usually has three days to review the document and requestthe seller to cure any objections that they may have.