A general timeline when buying a home in Phoenix AZ from contract accepted to close
Buying a home is a complicated process after all, buying a home maybe one of your biggest financial transaction in your life. As a Realtor, I found out that my buyer is more relaxed when they have a good understanding of the timeline and process of buying a home in Phoenix Arizona. Understanding the process and timeline when buying a home will a big help for proper planning, such as your lease will end soon and you want to move into your new home before school start and etc.
Your offer has been accepted by the sellers, but you don’t get the keys yet. We are now into “escrow”. It can take weeks and even months before you can move into your new home, and a lot can happen during escrow. Here are typically 30 days general timeline real estate transaction once your offer has been accepted by seller. Your timeline may vary slightly different depending on the terms of your contract and lender. Some lender may requires 45 days close due to the new CFPB requirements. Our lender partners typically takes 30 days to close.
Day 0
After back and forth negotiation between your agent and listing agent, both you (buyer) and seller had come to agreement on price and terms. Seller had signed and dated the contact and return to your agent. We now have officially binding contact. This also refer as contract date and day 0 in the timeline.
A lots of things happen on the first 10 days after contract accepted. This 10 days in the timeline is crucial when buying home in Arizona.
Day 1
On Day 1, you or your agent must deliver the earnest money deposit to the title company. The earnest money deposit, often around 1% of the purchase price, which is held in an escrow account. This deposit shows the seller that you are a serious buyer who intends to purchase the property. If you choose to cancel the transaction after a specified period of time, the seller may be permitted to keep your earnest.
Day 1 – 5
The seller is required to disclose all material facts relating to the property. Per Arizona Residential Purchase Contract section 4 Disclosure, seller to provide Seller Property Disclosure Statements (“SPDS”), Insurance Claim History (CLUE), Lead-Based Paint Disclosure and Affidavit of Disclosure within the 5 days after contact accepted. As buyer, you need to review all these disclosure and provide notice for any disapproved item. Buyer may also contact your insurance company to ensure the new home is “insure-able” and order homeowner insurance policy.
Escrow officer will order title commitment and request HOA disclosure and CC&R during this period.
Day 1 – 10
The fist 10 days in the timeline is inspection period which is part of the Arizona Residential Purchase Contract section 6 Due Diligence. During this 10 days periods, you and the experts you hire should conduct inspections of property. You can hire a licensed home inspector to come out and inspect the property and grounds and give you a report on all findings. A good home inspector will visually inspect the house and property and make recommendations for additional specialized inspections, such as roof, HVAC, chimney, pool, etc, if necessary. You may also need to hire separate termite inspection. All inspections must be completed within this 10 days periods.
If there is any findings that buyer disapproved, buyer may immediately cancel the contract and earnest money shall returned to buyer or ask seller to make the repairs or credit.
Buyer may advised to lock the interest rate during this period.
Day 11 – 15
Request repairs from seller (if necessary) from inspection finding. Submit request for repairs in writing before the inspection period is over so that you can negotiate repairs with seller before you sign off on your inspection contingency.
Day 15 or earlier
Meet with your lender to complete your mortgage application. If you are eligible for Down Payment Assistance Program that requires Home Buying Class, complete the home buying class as soon as possible. Your lender will need the certificate to complete the mortgage application. Your lender may ask your for additional documentations from time to time such as updated paystubs, bank statements and etc. As buyer that’s your responsibility to provide all up to date information in timely manner.
Your lender may order appraisal during this period.
Day 15 – Day 25
Loan package submitted to under-writer for final approval. You may received some “conditions” (if any) requested by under-writer. Your loan will only approved after all “conditions” are met. Again, it is buyer’s responsibility to provide information or documentations to satisfy these “conditions”.
Day 26 – Day 28
Your loan should be approved by this time, loan contingency is removed and all loan documents are being sent to escrow officer. Once lender approved all the documents, you will receive Closing Disclosure. It lists all the costs you’ll need to pay at closing along with all the money you’ve already put in, such as the earnest money. You and your real estate agent should look over this document to make sure everything on it is correct.
Your agent will schedule final walk through with you. During final walk through, you will evaluate the conditions of the home compare to the time your first visit. For example, AC still working, appliances and other items are still working as agreed upon. You also evaluating all repairs agreed upon being completed. After you satisfying with the final walk through, you will sign off Pre-closing walk through form. You need to setup all utilities account under your name starting on the closing date as listed in purchase contract.
Day 28 – 30
You will meet the escrow officer to sign all documents. You will bring in your down payment as stated inside purchase contract. Per purchase contract all documents must be signed 3 days before closing date. Once all the paperwork you signed at the title company is completed, your escrow officer will submitted to your lender for final approval.
Day 30
Your lender will wire the money to title company and fund your loan. The escrow officer will complete the transaction and dispersed the fund according to the terms of the contract. Then the escrow officer will record the property with new owner to the county recorder’s office. Once we have confirmation that the property has been recorded, escrow officer will notify your agent and your agent will pick up the key and hand them to you.
Congratulations, you are now a homeowner!
Swee Ng, Realtor and Phoenix East Valley resident specializing in win-win real estate transaction through great communication and fighting for his clients’ best interest. After all, this is more than real estates, this is about your life and your dreams.
If you are looking to buy or sell your home in Phoenix AZ area, we hope you will consider us. Contact us today for complimentary consultation.
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