Thinking about buying a home in the Nashville area but not sure exactly how the Tennessee Home Buying Process works? Here is a simple breakdown of the contract to close process here in the Nashville area. Each home buying experience is different so other things may arise. So here is what happens after we find your dream Nashville home!
Contract to Close
- Write Offer
After we find your perfect home – we write an offer to get you the best price and closing terms possible. You will also sign disclosures, agency agreements, and more – we will go over these documents with you.
- Negotiate Offer(s) and Create Binding Contract
The seller may counter so we will negotiate the terms and then once the parties are in agreement of all terms – we will have a binding contract.
- Title Company
When a contract becomes binding we will send documents to title company. The title company (closing attorney) has an important role in the home buying process – they will check title to make sure there are no liens or other problems, prepare closing documents, and handle the transfer of money.
- Loan Application/Approval
Within the first 3 days of binding agreement you must complete your initial loan application – and within the first 14 days you must be conditionally approved – notify lender of “intent to proceed”. This means you must pay for your credit reports, appraisals, and give all the forms necessary to approve you. The quicker you get this information – the easier it will be to close on time.
- Homeowners Insurance
Within the first 14 days – you as the buyer must choose a homeowners insurance policy before closing day – this is now done on the front end and not right before closing
- Initial Inspections
Usually within the first 10-14 days (this number is negotiable) of binding agreement we will schedule inspections – we recommend always doing both a home and termite inspection. You – as the buyer – can choose whomever you want for your home inspection (we have professionals we can recommend as well).
- Request & Negotiate Repairs
If during these inspections – certain issues arise that you as the buyer would like to be fixed before continuing with the contract – we can negotiate these repairs. However, both must act in good faith but neither party is obligated to the contract if they cannot come to an understanding within a reasonable amount of time (usually 3 days).
- Appraisal
The buyer’s lender will order an appraisal (which buyer will pay for) to make sure the value of the home justifies the price of the loan. If the appraisal falls short the buyer and seller must re-negotiate to meet lenders criteria.
- Re-inspect Repairs/Final Walk-Thru
The buyer has the right to re-inspect any repairs (you can have your inspector come re-check the repairs) and do a final walk thru usually 1-2 days before closing to make sure the repairs were done properly and no additional damage has been done to the property during contract to close.
- Transfer Your Utilities/Forward Mail
Before closing day – you want to make sure you have the utilities ready to be transferred into your name. We purchased a program which we offer all of our clients called updater – that helps you easily do this and even helps you forward your mail!
- Closing Day
Make sure you bring a VALID photo ID. Also – you will need to have either a cashier check or perform a wire transfer into the title company’s account. We will give you directions on which one. And then get ready to sign a lot of papers – and leave with some keys! After that – you will officially be a homeowner! YAYYYY.
If you are interested in buying or selling your home in the Nashville area – we would love to help you with this process. Feel free to reach us directly at 615-310-8661 or connect@nashvilleonthemarket.com or fill out the form below! We will get to you within 24 hours!
