When the parties have agreed upon the purchase contract, the buyer's agent usually will open escrow at a Title Company and deposit the earnest money. Earnest money is typically a deposit made to show the good faith of the potential purchaser.

Mortgage

If the buyer plans to secure a loan for the property, he or she must first pre-qualify with a lender (a bank or mortgage company) who will later need a fully executed copy of the purchase contract. This step is not required for cash purchases. Refer to the section of our website on mortgage process & costs for assistance.

Home Inspection

Home inspections are common practice in the State of Arizona, and are highly recommended because they help determine the condition of the property, including:

Safety
Health hazards
Excessive repairs (and costs)
Rodent or bug infestation (usually checked by a wood infestation specialist, not the home inspector)

The buyer hires and pays the inspector once the inspection is complete. In most cases, the buyer must sign a waiver if he or she does not wish to have the property inspected.

Look for inspectors who are licensed and bonded and who belong to the professional organization called the Association Society of Home Inspectors or ASHI. ASHI provides ongoing educational courses for inspector and provides helpful information to the general public about the home inspector profession.

The inspection is important starting ground for contract negotiation. Based on the inspection report, they buyer, through the agent, negotiates repair costs (and which party will carry out the repairs) and ultimately the price of the property.

Title Policy

When the title company receives the contract, it will issue a preliminary title report. This report is notice of the title company's intent to issue a title on the property when certain listed conditions are met.

The title search involves the property and both the seller and the buyer. The title should be made immediately aware of any disagreements with the listed requirements on the report.

Eight to Ten Days Before Closing

Be sure that:

· You have secured homeowners insurance;
· The Title Company has the instructions and the cost;
· Utility companies contacted to transfer accounts to your name by day of closing;
· You have a cashier's check for the remaining closing costs;
· You have contacted a moving company (they usually require advanced notice!); and
· You do a final walk-through of your property.

The Day Prior to Closing

The title company should have all documents prepared for your signatures and should provide you a copy to review. This packet will include an itemization of the cost of the property and the loan.

You will also receive a closing statement that outlines the final amount of money you will need to pay (in the form of a cashier's check) to the title company on the closing day.

Make sure you have all of your questions answered the day before closing, rather than on closing day.

If you are obtaining a loan, be prepared to sign numerous pages on the day of closing.

Should you want to carefully read all the loan documents, be sure to request those papers in advance.

Most loan documents are non-negotiable and the Mortgage Company will not allow any cross-outs, last-minute written in addendums or word changes. You must be willing to accept everything written on the final documents, and sign all the documents.