Loan Application

Usually, the buyer makes a loan application within five working days after a purchase and sale agreement has been signed by a purchase and seller.

According to the terms of the contract, you may need to secure loan approval within 15 to 30 days after mutual acceptance.  Appraisals are ordered and performed during this time period as well.

Inspection

Although every offer is different, if you offer is subject to an inspection sellers will usually require this to be completed within 5 to 10 days after mutual acceptance.  The inspection is done and you determine what, if any, items you wish to have corrected.  The seller will either agree to do; all, some or none of your requests.  Negotiations here are key, and knowing what to ask for is also very important in determining what you will get from the sellers.

Appraisal

Your lender will require an appraisal.  This accomplishes several things.  First, it’s your assurance that the property is properly priced.  Appraisers can call for work orders to be performed by the seller to make the property lendable.  Items that had been or may be difficult to get from the seller may now become mandatory in order to sell the home to you.

Escrow

An escrow is an arrangement in which a disinterested third party, called an escrow holder, holds documents and funds on behalf of a buyer and seller, and distributes them according to the buyer’s and seller’s instructions.  Once all terms and conditions of the instructions of both parties have been fulfilled, and all closing conditions satisfied, the escrow is closed and the safe and accurate transfer of property and money has been accomplished.

Closing and Possession

In Washington State, signing documents is typically done two to three days prior to legal closing, where ‘legal closing’ is interpreted as “conveyance of title from seller to buyer and the proceeds dispersed to the seller.  The buyer and the seller do not sign at the same time.  Almost all signing is done by ‘escrow companies’, not attorneys.  Even most real estate attorneys have their own escrow departments and an attorney is not actually present at signing.

Standard practice in this area for possession is ‘Closing + 3 days”.  What this means is that the buyer takes physical possession of the property three days after legal closing, or four or five days after the signing.  The practice was adopted as a way for the seller to receive their money so they could move – most sellers need these proceeds to use for the closing costs of their next home.  Vacant homes or homes from which the seller does not need to use the proceeds to purchase their next home  usually have possession on closing.