Timeline will vary upon many different conditions specific to your Purchase transaction. Some folks can be approved and closed in thirty days; others may wait several months. Each transaction is unique because Buyers and Sellers each have their own prerogatives in the transaction. Here's my Primer on the process based on my 23 years experience as a Mortgage Banker:
For HomeBuyers in the New York Metropolitan Region: The Five Boroughs, Nassau, Suffolk, Westchester, Dutchess, Putnam, Rockland and Orange Counties, there's a tried and true method for purchasing a home. Because we use Attorneys here in the Downstate New York area, HomeBuyers benefit from very specific protections built in to this method.
While a HomeBuyer might make the Offer to buy a home in writing, until a Contract of Sale is signed in the presence of your attorney, the transaction isn't binding. Follow the tried and true method and don't let anyone influence you to vary from it; it's for your protection.
In a New York home purchase, the timeline goes like this:
1. HomeBuyer and Seller negotiate the Offer. Offer is best presented in writing. After much hand-wringing and back and forth negotiation, both parties agree on a price and terms of the sale.
2. Offer accepted
3. Contract of sale is prepared by Seller's Attorney and forwarded to Purchaser's attorney for review
4. Purchaser hires a Licensed Home Inspector (As per NYS regulations, ALL Home Inspectors must be Licensed). The Home Inspection is conducted PRIOR to signing contracts. If inspection reveals a problem with Foundation, Roof, Plumbing, Heating or Electrical, Purchaser's Attorney discusses with Seller's attorney to obtain satisfactory remedy PRIOR to contract signing. The remedy can be either a Seller repair or Seller credit to Purchaser at closing.
Since Home Inspection is done before contract is signed, the Purchaser has the opportunity to negotiate or walk away with no obligation to the Seller.
5. Contract Signing. Once all issues and concerns and terms of the Contract of Sale have been satisfactorily worked out by Purchaser's and Seller's attorneys---including any Home Inspection issues---the Purchaser meets with Attorney to sign the Contract and present an "Earnest Money Deposit." This is often misconstrued as the Down Payment.
In fact, this is money presented by the Purchaser for the Seller's attorney to hold in an escrow account until closing. This is often referred to as the "Good Faith Deposit" because it's the Purchaser's way of telling a Seller "I'm serious about buying your home and obtaining the mortgage financing to complete this purchase! Here's my money as a show of Good Faith."
6. Mortgage Application. Purchaser applies for and receives approval for the mortgage loan
7. Title Report. Purchaser's attorney orders a title inspection of public records to verify the Deed can be transferred from Seller to Purchaser with no liens, violations, or other encumbrances. Purchaser's Lender's attorney reviews the title inspection, or title report, to verify there are no objections on the Lender's behalf that would affect the closing of the mortgage loan.
8. Closing! Purchaser completes Down Payment, Mortgage Lender ponies up the rest of the cash, and Seller hands over the Deed and the Keys to the House!
9. Purchaser buys steaks for first Barbecue in their own backyard of their own home.
10. 30 years of Fixed Rate bliss because you own a Piece of the Rock!
PowerHouse Solutions, Inc.
185 Great Neck Rd, Suite 240
Great Neck NY 11021
Licensed Mortgage Banker â€“ NYS Dept. of Financial Services
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Generally speaking the entire process from appraisal to closing should take about 30-45 days.
Feel free to contact me if you have any further questions. (347) 242-1206
Property type isn't the only thing that can determine the length of the transaction, this is why I recommend that you speak to your Realtor, attorney and Loan Officer. They are in tuned with the actual transaction and can better advise you of any situations that can demand more time before you can close. Maybe the seller is also buying another property and needs the time, maybe something comes up on title, etc.
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Senior Loan Officer
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
If you are working with an agent, they should be able to help you through the process and answer any questions you may have
Once the seller accepts your offer you want to get a home inspector in asap to do an inspection. If all goes well and there isnt any further negotiating to be done the sellers attorney will draw up contracts and send to your attorney. Your attorney will review, if all is well have you sign and leave your down payment. The contracts and your down payment then go back to seller to sign and down payment goes into the sellers attorneys escrow account. Once the seller signs the fully executed contract will be sent back to your attorney and you will get a copy to give to your bank. You will need this to start your mortgage application.
The bank will then order an appraisal and your attorney will order a title report (to ensure there are no liens or defects in the chain of title). If all is ok with the title and the appraisal comes in at the value needed to get the loan, the underwriting dept of the bank will look over the file and issue a commitment letter. Commitment letters usually come with some conditions, satisy them quickly and then wait for the final clearance to close.
Hope this helps.
Licensed Associate Broker
Accredited Buyer Representative