Once the Option Period ends, the status of the home is changed to Pending. It is during this process that final details are being conducted including:
Appraisal – if you are financing any portion of the home purchase, your lender will order an appraisal to be done. The appraiser’s opinion of value will be required to ensure the value meets or exceeds the amount of the sales price. Should the appraisal be lower than the sales price, it is fairly common to renegotiate the sales price between Seller and Buyer. Depending on the loan type, terminating the contract might be a necessary (and valid) option for the Buyer should the Seller be unwilling to negotiate.
HOA documents – if the home you are buying is in a home owner’s association, you will receive the resale package which will include the associations’s CC&Rs (covenants, conditions & restrictions). Should there be any undisclosed issues with the HOA that would present a hardship on the Buyer, terminating the contract and receiving Earnest Money back may be an option as long as this is done within the negotiated number of days in the HOA addenda.
Underwriting – your lending team will be wrapping up the details on the loan process ensuring everything is ready for closing day. They will likely need to contact you a few times during this process, so be responsive and timely especially if they need anything from you.
Closing Disclosure – several days before closing, your lender will be required to provide you a copy of the closing disclosure. This will detail all of the Buyer and Seller credits and debits so that you will know how much you owe at the day of closing. Go over this with your Realtor as well to ensure everything lines up with the contract.
You will also want to spend time during the Pending phase to prepare for moving day. Some of the most important things to take care of include:
Getting quotes from moving companies. Your Realtor should have their top choices based upon previous client’s experiences.
Getting bids from several contractors if you intend to do any work to the property before occupying it. You can typically gain access to the property with your Realtor during the Pending status, but don’t take advantage of this privilege. Work on getting this done within a couple of hours on 1 particular day.
Scheduling utilities to be connected on the date of possession. There are services that will do this for you at no cost to you. See your Realtor for more details.
Notifying important companies as well as family and friends of your new address.