Congratulations! Your realtor has presented your offer to the sellers, and the sellers have agreed to your terms and signed. We have won our offer with the sellers and now have a fully executed contract. Here is where the ball really starts to get rolling. 

Now, there are 6 important dates on a contract. We have a video specifically on these dates, available on our Youtube and blog. However, I will also cover them in detail below:

#1 – Ernest Money Deposit – Also referred to as a “Good Faith Deposit”, the Earnest Money Deposit (EMD) funds are given to the title company at the beginning of the real estate transaction. These funds signify that the buyers are serious about purchasing the property. The standard time frame for the EMD is 3 days from when the real estate contract was signed and executed.

#2 – Loan Application Date – This date refers to when the borrower makes a loan application with the broker or lender. On a standard FARBAR contract, the loan application date is within 5 days of the executed contract. Hopefully, you have already reached out to your broker to get preapproved before putting in the offer!

#3 – Inspection Period – Another important contract date is the number of days given for the inspection period. The standard timeframe is 15 days. These inspections can include your home inspection, 4-point inspection, radon test, pest inspection, septic inspection, well inspection, pool inspection, etc.

#4 – Loan Approval Date – The Loan Approval date is typically 30 days from the time you sign your contract. This date is especially important, as it can have financial implications on your EMD funds. If you do not meet this date, you could lose your EMD to the sellers. Big deal!

#5 – Title Commitment Date – The Title Commitment Date is the period in which we need free and clear title for the closing. This could be between 5-15 days prior to closing the loan.

#6 – Closing Date – The big day! The closing date on the mortgage is the expected day for the loan file to close. This is typically between a 30-60 day closing period.

If you like to learn more about the mortgage process or have any questions about mortgage financing, give us a call at the office at 727-376-6900.

NMLS ID: 327290; NMLS ID: 2062741

Equal Housing Opportunity