The Transaction Process

Getting Started:

• Financing

Initiating financing includes an on-line or personal meeting with a lending institution to submit a mortgage application and all required financial paperwork.  The bank will usually issue a pre-approval letter within two weeks.

• HomeSearch

The HomeSearch includes the review of all listing information sheets for homes currently on the market meeting specific criteria in selected towns.

• Drive-By, Viewing, Selecting

Driving around and getting to know specific areas and neighborhoods.  Making appointments to see homes that look interesting.  Selecting a home to move forward with an offer to purchase.

The Transaction:

• The Offer

Filling out and submitting the standard offer forms.  The information required includes: offering a purchase price, a binder check, down-payment amount, mortgage application date, mortgage commitment date, the date for the signing of the purchase and sales and the closing date.  Also included with the formal offer is a contingency page providing the buyer the opportunity to perform inspections and a mortgage contingency to confirm financial backing for the purchase.

• Negotiations

Negotiations are performed verbally. When an agreement is reached the terms are re-written into the offer. The offer is considered “fully executed” after buyer and seller have initialed all changes and the seller signs and dates the contract. With an executed offer, the binder check is deposited in an escrow account as part of the buyer’s down payment.  If negotiations do not reach an agreement, the binder check is returned to the buyer.

• Inspections

A ten-day grace period is usually provided to perform professional inspections of the property.  If there are “serious structural, mechanical or other defects” found, the buyer has two options: 1) Withdraw the offer or 2) Re-negotiate with the seller to remedy the concerns.

• Purchase and Sales

The P&S is typically signed within 15 days of the accepted offer after inspection concerns are resolved.  Real estate attorneys usually assist each side (buyer/seller) with legal representation.  The remainder of the down payment (usually 5%) is passed along with the signing of this document.

• Mortgage Commitment

The mortgage commitment is usually delivered 4-6 weeks after the accepted offer.  The bank completes a third-party appraisal of the property then formally commits, in writing, to provide financing for the purchase.

• Final Walk Through

The final walk-through is usually performed about an hour before closing.  The seller has completely moved out of the property.  The purpose of the walk-through is to verify the condition of the property before purchasing.

• Closing

The closing is the formal signing of all closing documents required by both the bank and the Commonwealth of Massachusetts. All documents acknowledging transfer of ownership are driven to and recorded at the Registry of Deeds.