Buying Process - A Timeline

The buying process, for someone with traditional financing from a bank (not a short sale or bank owned property), would look something like this:

1 Day...........................................................

Accepted offer on Property

After the buyer has found the home of their dreams, buyer/seller will have a fully-executed binder (in Connecticut), or would go straight to a contract in another state. This document (binder) details the dates that are explained in the rest of this timeline. In this state, a 1% good-faith deposit is held in escrow by the buyer's agent.

 

$$: Good Faith Check - 1% of purchase price

7-10 Days................................................

Complete Inspection/Negotiations

The buyers will be required to finish their inspection(s) within 7-10 days of an accepted offer on the property. This includes all building, termite, septic, and other inspections as stipulated in the binder.

 

$$: Cost of Inspection - $500-$1000 for building inspection, and varies based on need for radon, termite, or other alternate inspections;
$$: Septic Inspection - $500

Schedule and Arrange Appraisal

After negotiations are complete for inspections, the buyers will push their mortgage company for the appraisal to be completed within two weeks. This should happen quickly so the bank can complete the approval process.

 

$$: Appraisal Cost - <$500

14 Days......................................................

Signing of Contracts

Contracts should be written by the attorneys, then reviewed and signed by buyers (within 14 days of accepted offer), and then sellers. At this stage, the buyer is required to give a portion of the down payment, depending on how much they will give in total, between 5 and 10%. This contract also stipulates the mortgage commitment date, and the closing date, and is set in stone.

 

$$: Partial Down Payment - 5-10% of purchase price

45 Days.....................................................

Mortgage Commitment waived

The bank and mortgage broker have 45 days after the accepted offer to generate an approval letter, and then a clear to close. This is the final document required to confirm a closing. The buyer should have been communicating thoroughly with the mortgage broker to ensure this process goes smoothly.

60 Days....................................................

Walk-through and Closing

Closing should happen about 60 days after an accepted offer, usually with paperwork signed AFTER the buyer has walked-through the home. The walk-through happens the day of, or before. Though this might change with new law that was implemented in October of 2015, but generally stays the same. 

 

$$: Closing Costs - (Varies greatly, read more about closing costs)
$$: ​Additional Down Payment - 5-10% of purchase price

A disclaimer: This is a rough timeline of the process of purchase and obtaining financing for a home. The dates, dollar amounts, process changes greatly on a case-by-case basis, and is highly dependent on the local real estate market and process. This is intended for Fairfield County, Connecticut buyers.