Contract to Closing Day

After the contract is signed in a New York real estate transaction, there are several crucial steps that need to be completed before the closing can occur. Here’s a detailed breakdown:

1. Earnest Money Deposit: The buyer typically submits an earnest money deposit, which is held in escrow, to demonstrate their commitment to the transaction.
2. Title Search and Examination: The buyer’s attorney or a title company conducts a title search to ensure that the property’s title is clear of any liens, encumbrances, or other issues. This step helps ensure that the buyer will receive clear and marketable title to the property.
3. Mortgage Application and Approval: If the buyer is obtaining financing, they begin the mortgage application process. The lender reviews the buyer’s financial information, orders an appraisal of the property, and underwrites the loan to determine if the buyer qualifies for financing.
4. Home Inspection: The buyer hires a licensed home inspector to conduct a thorough inspection of the property. The inspector identifies any issues or defects that may need to be addressed before closing.
5. Negotiation of Repairs or Credits: Based on the inspection report, the buyer and seller may negotiate repairs or credits to address any issues discovered during the inspection.
6. Condo or Co-op Board Approval (if applicable): If the property is a condominium or cooperative, the buyer may need to submit an application to the condo or co-op board for approval. This process can take several weeks and may require additional documentation and interviews.
7. Finalizing Mortgage Approval: Once the mortgage application is complete, the lender finalizes the loan approval process. This may involve providing additional documentation or information requested by the lender.
8. Obtaining Homeowners Insurance: The buyer secures homeowners insurance coverage for the property, which is typically required by the lender as a condition of the loan.
9. Finalizing Closing Details: As the closing date approaches, the buyer’s attorney coordinates with the seller’s attorney, the lender, and the title company to finalize the details of the closing, including scheduling the date, time, and location.

By following these steps and working closely with experienced real estate professionals, buyers and sellers can ensure a smooth and successful transaction from contract signing to closing.