Timeline Best Practices
- Purchase and Sale Suggested Timelines for 60 Day Closing: Consult Your Lender for Variances
|Mortgage and Insurance Application dates||7 days after termination date|
|Inspection Contingency Dates||15 days after termination date|
|Insurance / Mortgage Contingency Dates||45 days after termination date|
|Closing||60 days after termination date|
- Termination date is the date found on the last page of the Purchase and Sale agreement whereby a seller and buyer need to accept all terms and agree to the sale.
- If a buyer needs more time? Extend these dates or contact the lender for specific instructions. Please note that Inspection issues, appraisal issues, failure by the buyer or seller to provide timely documentation or perform, title issues, pay-off issues all may delay this timeline.
- When calculating dates, use a calendar to ensure you do not pick weekends or holidays for contingency or closing dates.
- Set the contingency dates based on the offer’s termination date (paragraph 37) to ensure your buyer has the full amount of days to perform.
- If the termination date is extended to allow the seller more time to execute and deliver the contract, extend the contingency dates as well, so you’re adhering to the basic timeline plus the extra days.
Communication Best Practices
- COMMUNICATE – COMMUNICATE – COMMUNICATE, with each other, with the mortgage lenders, with the attorneys. Send paperwork promptly, in full, and respond to calls and emails promptly.
- Paperwork: Email the Purchase and Sale agreement to the chosen Lender and Attorney ASAP so they can add the sale to their closing schedule.
- Dual Sale: Agents involved in back-to-back closings need to be hyper vigilant and communicate with both lenders involved in the transaction, as well as each other, about the status of both transactions.
- Addendums: Send a copy of any and all addendums to the agreement to both the Lenders and Attorneys as soon as they are executed.
- Repairs: If there is an issue at walk-thru that the buyer and seller can’t resolve themselves, the agent needs to call the lender right away so the issue can be reviewed by the underwriter/compliance.
Contract Best Practices
- New Contact Form: Complete and send the contact sheet to the lender and attorneys for smooth processing. There are new requirements for completing the Closing Disclosure that require this information.
- Repairs: Only include items in special conditions or addendum that you want the underwriter to consider when approving a loan. Also consider that if you identify inspection issues that must be resolved, such as sewer pipe replacement or wiring updates, the bank may have to send the appraiser to re-inspect after completion of the repairs, as the loan is now subject to completion.
- Fixtures: Anything not already included in the fixtures paragraph 12 or a standard appliance (refrigerator, oven/stove, washer, dryer, etc…) should be part of an agreement outside of the Purchase and Sale agreement. Underwriting cannot loan on personal property as part of the transaction sale price. There is a new Agreement to Purchase Personal Property form your use in the Berkshire Purchase Contracts.
- Understand the timeline: In this material is a timeline of steps that take place from offer to close. Familiarize yourself with the process so you can see where delays in one area affects others working on the transaction.
- Title: Please make special note that title work takes 2-3 weeks. If the attorney waits until the mortgage contingency date to search title, it may be too late. Make sure the attorney is selected and has a copy of the P&S agreement and all accompanying documents and addendums no later than the home inspection date. They should be aware they have been chosen and can get started to avoid delays. Also note that some lenders have a closed attorney list.
- Documents: When the contract is sent to the Attorney/Lender, please always include a copy of all pages of the Purchase and Sale, any/all addendums, a copy of the deposit check and the signed lead paint disclosure notification. When the second deposit is received and/or if any other addendums are executed, send those along as well.
Developed with: Academy Mortgage, Adams Community Bank, Berkshire Bank, Greylock Federal Credit Union, Lee Bank, MountainOne Bank, Salisbury Bank, and Trustco Bank.