The North Carolina Offer to Purchase real estate contract has adopted a due diligence period which gives the buyer the opportunity to investigate the property and determine if they will proceed with the transaction. Buyers must also have their mortgage in place prior to the expiration of the due diligence date or risk losing their earnest money deposit.
Here is a checklist for agents and buyers and some things to keep in mind about the time periods involved.
Check list for agents for Due Diligence time frame:
______Client makes loan application – typically within 5 days
______Loan app submitted to Processing – 24 hours after receipt of complete application
______Appraisal ordered within 24 hours of receipt of complete loan application
______Appraisal delivered to Lender – 5-7 business days
______Appraisal reviewed and cleared – 5 business days
______Give Attorney name and contact information to loan officer
______Title Work ordered/Title work received and reviewed by Lender
______Homeowner’s Insurance verified/binder received for closing
______Condo/Townhome – Provide Lender with contact information for HOA/questionnaire/master policy
______Inspections completed and repairs negotiated
______Survey ordered/received by attorney
______Loan Approval (minor conditions can exist)
Loan types/processes that require additional time:
• Funds to close : Gift funds/Stock Liquidation/Bonus Check/401k loan or liquidation. Borrower needs to check up front to find out how much time is required.
• Property is unique or has very few comps – appraiser may need additional time.
• USDA Loan - Add additional time for USDA review (add 3 weeks)
• NC Housing Loan - Add additional time for NC Housing review (add 1 week)
• VA Loan – appraisal can take longer
• Jumbo loan - Typically need 45 days for approval
• Self-employed
• Second Mortgage – If borrower is getting a first and second mortgage, the second mortgage is typically a separate process and may require a 2nd appraisal.
Feel free to contact me as soon as you're thinking about buying a home in North Carolina!
