Once your home is under contract you will begin the ‘Due Diligence’ Phase. This portion of the transaction may seem stressful. Don’t worry...we will walk you through it.
Due Diligence is the “vetting” phase of your home purchase. It typically lasts between 14-28 days (but can be shorter or longer depending on the terms agreed to in the contract.)
During this phase, you will be completing your loan application, getting your appraisal, home inspection(s), etc. All “due diligence activities” must be completed prior to the expiration of the due diligence date. This is a very fast-paced period. If there are any unresolved issues near the end of the due diligence period, we may need to ask the seller for an extension of the due diligence phase or the contract will need to be terminated and renegotiated. Terminating a contract is a last resort.
DO NOT DELAY ANY OF THESE CHECKLIST ITEMS DURING THE DUE DILIGENCE PHASE.
The Due Diligence period checklist:
Mortgage Loan: Make sure your loan officer has a copy of your contract. We typically forward the contract to the loan officer but make sure they have a copy within 48 hours of contract acceptance. You need to get your loan process started as soon as possible. You will complete a lot of paperwork and your loan officer will require you to provide a lot of information regarding your finances. Make sure you respond to your loan officer as soon as possible. Not responding quickly to requests can delay your closing. The loan officer will order an appraisal of the property.
Appraisal: When you apply for your mortgage, you will need to obtain an appraisal. If your house does not appraise at contract price or higher, the terms of the contract are usually renegotiated. DO NOT delay your appraisal for any reason.
Insurance: Obtain an insurance policy for your new home. Your loan company and the attorney will work together during escrow to set your insurance escrow account set up (if you want an escrow account). We will fax a copy of the MLS sheet to your insurance provider if necessary.
Attorney: Select an attorney to close the real estate transaction for you. The attorney has many things to do during your transaction including: title search, preparing the deed and other forms, organizing the loan package for closing, distributing monies after closing, etc. The attorney will send you a buyer info sheet. Please complete this and return it to the attorney ASAP.
Inspections: NOTE: North Carolina is a ‘caviat emptor’ state. This translates into “let the buyer beware’. Buyers are responsible for finding out as much information as possible about the home and property.
Recommended Inspections include:
We will schedule these inspections for you and we will try to schedule all your inspections on the same day. ALL inspections need to be completed during the Due Diligence time frame.
Planning your move: Contact moving companies ASAP. They are sometimes booked out weeks in advance.