HOME BUYING PROCEDURES IN THE PIONEER VALLEY
- The Buyer signs “Offer to Purchase” which is accompanied by an initial deposit (usually $100.00) and a Pre-Approval letter from a financial institution.
- The real estate agent submits offer and handles negotiations.
- Seller signs offer when accepted. If the home was built prior to 1978, Buyer receives lead paint notification package from broker and signs notification certification.
- Upon acceptance of Offer, Buyer submits name of Attorney to Agent for review of Purchase & Sales Agreement.
- Buyer signs Purchase & Sales Agreement, which is accompanied by a full deposit (3% - 5% of the purchase price) which is held in escrow until the closing.
- Usual contingencies: obtaining a mortgage, appraisal of the home, home mechanical/structural inspection, and termite inspection. Average time until closing (transfer of title) 30-60 days.
- Seller signs Purchase & Sales Agreement upon acceptance
- Buyer takes fully executed Purchase & Sales to Mortgage Company.
- Buyer arranges for inspections within ten days of executing the Purchase & Sales Agreement or as stipulated in P & S with an inspector of his/her choice.
- Lender orders a credit report and verifies Buyer’s employment. If both are satisfactory, lender orders appraisal of property.
- Lender approves mortgage application and forwards documentation to the closing attorney.
- Attorney examines the title, orders a survey and coordinates other necessary documentation including tax, oil, and water and sewer adjustments.
- Seller and Buyer contact utility companies to arrange for service to be transferred and continued as soon as a Closing Date is set.
- The attorney informs Buyer of funds needed for closing.
- Insurance agent for Buyer arranges for hazard insurance policy to be taken to closing.
- Closing is customarily held in the office of Buyer’s attorney or at the Registry of Deeds.
- Buyer is given copies of the closing statement and other closing documents.
- Buyer takes possession of home right after closing.