The Home Buying Process - Step Five & Six
Congratulations!! Your offer was chosen! You are now under contract. Typically this is 30-60 days until closing depending on what was negotiated in the contract.
Now what? Earnest and Option money is due. Earnest money is a good faith deposit typically 1% of the sales price which shows the seller you are serious about purchasing their home. Both earnest and option will be sent to the title company and are due within 3 days of going under contract.
Remember the option period we discussed? You are now in Option Period where you have the option to stay under contract or the option to not. During this time we will schedule inspections.
After inspections are done we will review the report and negotiate any repairs that are necessary so you can move into your new home worry free.
Once the Option Period is over, the title company gets to work to ensure the property you are buying is free from any other liens and that the person selling is actually the owner. During this time, your lender is working with you and making sure they have all the info needed to get you through underwriting and closing on time!