Contingencies and What’s Next: Navigating the Path to Closing

 

You’ve found the perfect home, your offer has been accepted, and you’re officially under contract—congratulations! While the excitement builds, there are important steps to complete before you can officially close on your new home. Typically, the time between contract acceptance and closing is 30 to 45 days, during which we address and resolve various contingencies.

Let’s break down the key contingencies and what to expect as we move closer to closing day.

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1. Home Inspections

One of the first steps after your purchase agreement is signed is scheduling a home inspection. This is a critical part of the process, as it provides a professional evaluation of the property’s condition.

What to Expect During the Home Inspection

• Timing: Inspections are usually scheduled within two days of contract acceptance and typically take 2–3 hours to complete.
• Attendance: If possible, plan to attend the inspection. This gives you an opportunity to ask questions and gain a better understanding of the home’s condition. If you can’t attend, don’t worry—most inspectors provide a detailed written report and can discuss their findings with you.
• Payment: You’ll pay for the inspection at the time of booking.

Radon Testing

During the inspection, you may choose to add a radon test, which takes 48 hours to measure radon levels accurately. Keep in mind that the inspection contingency has a deadline, so we’ll need to plan accordingly to allow enough time for negotiation and resolution based on the inspection results.

Next Steps

Once the inspection report is completed, we’ll review the findings together and decide on the next steps. This may include:

• Requesting repairs or concessions from the seller.
• Proceeding with the purchase as-is.
• Walking away from the contract if major issues arise (per the inspection contingency).

I’ll guide you through every step to ensure your interests are protected.

Watch: Home Inspection Tips for Buyers

Gain valuable insights into the home inspection process with Rochelle and a professional home inspector. This video will help you understand what to expect, how to prepare, and why inspections are essential.

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2. Appraisal Process

An appraisal is required by your lender to verify that the home’s value matches the purchase price and is sufficient to act as collateral for your loan.

What to Expect

• Scheduling: The appraisal is ordered by your lender, and they’ll coordinate with the appraiser.
• Payment: Some lenders require payment upfront, while others include it in your closing costs.
• Timeline: Appraisals typically take 7–10 days to complete, depending on the market and availability of appraisers.

If the appraised value comes in lower than the purchase price, we’ll work together to address the situation. Options may include negotiating with the seller, adjusting the loan terms, or covering the difference with additional funds.

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3. Condo/HOA Document Review

If you’re purchasing a home in a condo community or a neighborhood with a homeowners association (HOA), you’ll receive a package of documents to review.

What’s Included in HOA Documents

• Rules and Regulations: Details on how the community is managed, including restrictions on property use and maintenance.
• Budget and Fees: Information on HOA fees and how they’re allocated.
• Community Guidelines: Policies on amenities, parking, pets, and more.

Your Rights During the Review Period

From the time you receive the documents, you’ll have three days to review them. If you find any issues that don’t align with your expectations, you have the right to void the contract within this period.

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4. Insurance

Securing homeowners insurance is a vital step in the process. Your insurance premium will be included in your monthly mortgage payment through your escrow account, so it’s important to shop around for the best rate.

Tips for Choosing Homeowners Insurance

• Compare Quotes: Get quotes from multiple providers to ensure you’re getting the best coverage at the best price.
• Bundle Policies: Many companies offer discounts when you combine homeowners and auto insurance.
• Check Coverage: Ensure the policy adequately protects your home, personal property, and liability.

If you’re unsure where to start, I can provide recommendations, such as contacting Steve at Integrity First Insurance for trusted guidance.

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5. Title Search

The title search is performed by the settlement company to ensure there are no liens, claims, or defects that could affect your ownership of the property.

What Happens During the Title Search?

• Title Examination: A thorough review of property records to verify clear ownership.
• Abstract Update: Updating the historical record of the property to reflect the current transaction.
• Warranty Deed Preparation: Creating the deed that will officially transfer ownership to you.

The title search ensures you receive clear title to the property, free of any legal issues or encumbrances.

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Your Role During This Phase

While the professionals handle much of the work during the contingency period, here’s how you can stay involved:

• Respond Promptly: Be available to answer questions or provide additional documentation.
• Stay Informed: Ask questions about anything you don’t understand—I’m here to help!
• Prepare for Closing: Use this time to gather any required funds and finalize moving plans.

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Final Thoughts: Trust the Process

The contingency phase is a crucial step in your home-buying journey, and I’ll be with you every step of the way to ensure everything runs smoothly. From inspections to title searches, my goal is to make this process as stress-free as possible while protecting your interests.

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Need More Information? Contact Rochelle!

Have questions about contingencies or what’s next? Call me at 218-979-1722 for personalized guidance and support.

Additional Resources

• Search For Homes
• What Is My Home Worth?
• About Rochelle

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Next Step

Once contingencies are resolved, it’s time to focus on the final steps before closing. Learn more in the next section:

👉 Step 14: Made Offer… What’s Next?