DCU Realty's Home Buying Guide
The purchase and sale agreement is signed approximately 2 weeks after the offer has been accepted and all home inspections have taken place. It spells out both parties' responsibilities during the period when the property is taken off the market and closing.
The purchase and sale agreement will also include any agreements reached about items found during the home inspection.
In Massachusetts, the P&S is usually a standard form provided by either the state or local realtor boards. Your agent is limited to filling in the blanks on the form, and the standard P&S tends to favor the seller.
Therefore, we strongly encourage our buyers to retain a real estate attorney.
The attorney will modify the P&S in order to best protect the buyer's interests and customize the agreement to the particulars of the transaction.
Any additional deposits are traditionally due with the executed P&S.
Once the purchase and sale agreement has been signed, your lender will begin working on the file. They will order an appraisal and title work, re-verify all your financial documentation and recheck your credit. They will verify that you still can in fact qualify to borrow the amount of money that you need and that the house that you are purchasing is in fact worth what you are paying for it. Once the commitment letter is received, closing can be scheduled.
Finally, the big day arrives!
The day before closing, the closing attorney will let you know how much money you need to bring to the closing. This needs to be a certified check so make sure you have time to get to the bank.
You should also be prepared to do a final walk-through of the property the day before closing. This is to ensure that the seller has vacated the property and left it in the condition specified in the sales contract. If there are any major problems, closing can be delayed or the attorneys may have the seller deposit money into an escrow account to cover the necessary repairs.
When you get to closing, you will be given an opportunity to review all of the closing documents, including your mortgage, note and Closing Disclosure which details the list of costs associated with the sale of the home. You should compare this to your Loan Estimate to be sure the costs don't differ greatly. Often you will get the Closing Disclosure 24 hours in advance to give you time to review it. Once you've reviewed and signed all closing documents, the house keys are yours and you will have successfully purchased your new home!
*** The above information pertains to a Massachusetts real estate transaction. Other states, although similar, may vary in the process.