STEP 1 INITIAL CONTRACT / ATTORNEY REVIEW When you have located the property you wish to purchase you will most likely present the Seller with an offer to purchase through a licensed realtor. You will most likely sign a contract prepared by a realtor which are standard contracts which must provide you with a 3 day "attorney review" period. During this review period, both the Seller and Buyer may review the proposed contract with their attorneys. During such review the contract may be approved, disapproved or approved with changes. It is in your interest to discuss the contract with your attorney during the 3 day review period so that your attorney may more effectively address your particular concerns. STEP 2 MORTGAGE APPLICATION Since most purchases of residential real estate include the provision that a that the purchasers primary duty is to immediately, efficiently and aggressively pursue such mortgage financing. As a practical matter, that means an application for mortgage financing must be completed immediately following attorney review, if not before, with a mortgage company previously chosen by the applicant. Typically, mortgage contingency purchaser will need mortgage financing to complete the purchase, it is important to note periods run between thirty and sixty days. Although this office will assist you in perfecting your mortgage application by dealing directly with the mortgage company, it is the purchaser's primary responsibility to keep in contact with their mortgage banker or broker to ensure the completion of the mortgage application itself and to satisfy any subsequent conditions that the mortgage company imposes on the commitment. THE COMMITMENT IS AN EXTREMELY IMPORTANT DOCUMENT. YOU MUST CAREFULLY READ YOUR COMMITMENT IN ORDER TO UNDERSTAND WHAT IS REQUIRED OF YOU FOLLOWING THE ISSUANCE OF THE WRITTEN COMMITMENT AND BEFORE CLOSING OF TITLE. STEP 3 HOME INSPECTION CONTINGENCIES Residential real estate contracts call for the purchaser, at his own expense, to conduct an inspection of the premises in order to determine the existence of any latent or non-apparent deficiencies in the property. It is extremely important that you keep our office informed of the status of all contingencies contained in your contract of sale including termite inspection, structural inspection, well and septic inspections and radon inspections. It is vital that these inspections be completed and a written report received within the time period set forth in the contract. Please arrange to have the inspection company forward to your attorney copies of all relevant inspections as soon as they are prepared. Upon your receipt of the results of these inspections, contact your attorney to discuss any problems revealed by the inspections. Your attorney will assist you in negotiating with the Seller to resolve any such deficiencies. STEP 4 TITLE INSURANCE / SURVEY When obtaining mortgage financing it is required that a title search and a title insurance policy be obtained in at least the amount of your mortgage. This office is responsible for ordering same for you. In addition, most banks require a new survey of the premises at the time of closing. STEP 5 POST-COMMITMENT REVIEW BY MORTGAGE COMPANY Once you have received your mortgage commitment and this office has received the title search and survey, this office will comply with your bank's instruction and submit all documentation they require for review prior to closing. After the bank's review of the documentation, they will allow us to schedule a closing at which time we will contact you, the Seller's attorney and the real estate broker and arrange for a mutually convenient closing date and time. Immediately following your receipt of a mortgage commitment, you should make arrangements to obtain an ORIGINAL homeowner's insurance policy NOT BINDER (hazard insurance) along with an ORIGINAL paid receipt of the first year's premium. STEP 6 CLOSING OF TITLE The date of the closing on the contract is an estimated closing date and should be used as a rough guideline. Please do not plan on closing on this particular date, as that is not always possible. On the afternoon immediately prior to the actual closing, our office will prepare the final figures in consultation with both the mortgage company and the opposing attorney. Once this calculation has been completed, our office will contact you with the exact amount of money you should bring to the closing to cover the remaining down payment and any closing costs attendant to the closing. Our office will give you a bottom line figure that will include the amount due to the Seller along with these closing expenses. CLOSING COSTS One of the most underestimated factors during the closing process is the various settlement charges or closing costs. Your mortgage company will provide a document to you entitled "Good Faith Estimate". While this document is a helpful guideline, we urge you to contact our office to discuss other potential settlement charges which may be apply to you, especially in situations where you may be purchasing a Condominium.