The initial agreement and deposit
A binding contract is one signed by both parties: buyer and seller. Once you have that in place it’s time to give a deposit, also known as “earnest money” or “good faith money”, which is applied to the purchase price at closing. This is commonly held in the escrow account of the listing agent (seller’s representative), or the attorney for the seller trust account. This deposit should be made within 48 hours of a signed contract.
Home Inspection
If a home inspection is a contingency is to the contract, this should be scheduled as soon as possible. The usual timeframe is within 14 days after the contract is signed and should be specified in the contract.
Appraisal
If the contract is contingent on financing, then the property will be appraised by a licensed appraiser to determine the value for the lending institution, via a third party. This is done so that the lending institution can confirm that their investment in your property matches the contract price.
It is imperative that you keep in close communication with your lender who will let you know when/if additional documents are needed to approve your loan application and fund your loan.