Claudia Harrison

Did you know there are couple of things that have to happen before a buyer and seller can close escrow?

Any contingencies that are in a contract must happen or the deal may not close.

Here are a couple of common contingencies that are typically found when a buyer and seller are under contract.

✅Inspection period - When the buyer hires an inspector to check out the house they are under contract on, this helps the buyer to know what condition the house is in before moving forward on the home. If it’s too much work for the buyer, they can negotiate with the seller such as having the items repaired or asking for seller credit.

✅Appraisal - This is where the lender hires an appraiser to make sure the house is worth what the buyer is offering. The lender is only going to loan the buyer what the house is worth and not a penny more.

✅Title commitment - The process of the title company is to reveal any liens defects etc. on a house and making sure those issues are basically free and clear (aka marketable) by the time it turns over to the buyer. If there are any issues that come up, such as an unpaid contractors loan, it has to be paid off or closed out prior to the buyer receiving the house or the house may not sell.

✅Loan Commitment -The lender wants to make sure the buyer can pay the loan back over time. So, the lender thoroughly checks the buyers finances and if everything looks good the lender will approve the loan to the buyer.

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