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Removing contingencies
Once you have a property under contract your focus needs
to be on removing contingencies. These should be taken in a specific
order.
If your offer is subject to an attorney’s review and
approval, this needs to be satisfied before you spend money on
inspections or appraisal. A contract that is subject to an attorney’s
approval can be rendered null and void by either attorney simply by them
saying they don’t approve of the contract. Therefore, you really don’t
have a deal until the attorney’s approval, if applicable, is obtained.
It is a good idea to have an attorney review the
contract to be sure that you aren’t getting into a legal entanglement.
It is their job to review the legalities of the contract and to offer
advice to their respective clients with regard to the transaction.
Once you have the attorney’s approval, proceed with the
property inspections. Once they are done and any repairs negotiated with
the seller to your satisfaction, then have the bank appraisal done. Have
the lender hold off on actually having the appraisal done until you know
that you are proceeding with the transaction following the property
inspections. You don’t want to spend money for an appraisal if the deal
is canceled over repair considerations.
Once the appraisal is complete then your mortgage
application can be completed and sent to underwriting for a final
mortgage commitment.
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