Here are a few suggestions for when you are preparing a purchase and sales agreement to help avoid delays. NOTE: I’m NOT an attorney and this is NOT legal advice. I’m simply a Licensed Loan Officer offering suggestions based on my observations. 🙂
Let’s start with your name. It’s very helpful if you have your name on the purchase and sales agreement, as the buyer, reflect how you want your name to appear on title. You should also let your Loan Officer know how you want your name(s) to appear on title as well so that the loan application matches the purchase and sales agreement.
If you are using a VA mortgage to purchase the home, the Veterans name much match the name as it appears on the Certificate of Eligibility.
It’s not a huge deal to correct or update how a name is appearing on the purchase and sale agreement. It may be as easy to fix with an addendum to the contract.
Get your home inspection done pronto and don’t delay getting the appraisal ordered. If your purchase is subject to a home inspection, you’ll want to get the inspection done as soon as possible. You may also want to check with your lender about not waiting for the inspection results for ordering the appraisal. Odds are, in this current market, the appraisal may not be scheduled by the time you have your inspection results. You will at least get your property in queue for when the appraisal will eventually be done. Worse case, you can cancel the appraisal should the inspection results cause you to not want to proceed with the property. If the appraiser has not yet been to the home, there should not be an appraisal fee due.
By the way, if you request a bunch of items for the seller to repair and then accept a counter of cash in lieu of the repairs, the lender may still require the items be repaired prior to closing (depending on the items).
Avoid changes to your loan application. This includes employment changes, changes to your credit profile as well as changes to your funds for closing. Moving funds around to one account just means you’ll have to document where all the funds came from. Lenders have to document where all funds for closing are coming from as well as large deposits to your accounts. Lenders also re-verify your employment and credit just prior to funding your purchase.
ATTENTION REAL ESTATE BROKERS: Please attend the appraisal. With how overloaded appraisers are, it’s not unusual to have them miss the CO detectors or earthquake straps on the hot water heater… missing either could result in the appraiser having to make another trip to the property and potentially delay the closing of the transaction.
Last but not least, let your Loan Officer know asap if you have any trips planned before closing. With the new disclosures that lenders are required to provide, it’s imperative that you respond as quickly as possible when documentation is sent to you or requested from you. Some documents may require “wet” signatures which may be more cumbersome when you’re away.
If you are buying or refinancing a home located anywhere in the state of Washington, where I’m licensed, I am happy to help you!