Ratified Contracts: Tips for Branford Homebuyers

In part one of this two-part blog series, we went over some basics on ratified contracts within the realm of mortgages. Ratified contracts are legally-binding contracts between buyers and sellers of a home, containing many pieces of important information that are not only required by law, but also play an important role in the transferring of homeownership from one party to the other.

At Primary Residential Mortgage, our team of loan officers provides numerous resources for Branford clients throughout the process, including a mortgage checklist and many other areas of expertise for you to lean on. We’ll help you understand exactly what’s included in your ratified contract and what you need to know about it, including important dates and related themes. Today’s part two of our series will go over a few additional concepts to keep in mind when it comes to the ratified contract.

Who Provides a Ratified Contract?

In nearly all cases, either your real estate agent or loan officer will provide the ratified contract to you. It’s important to remember that you should never sign a contract until you have had a chance to fully review it, even if someone is pressuring you to do so. Doing so could have serious consequences down the road.

Keep in mind that there are some situations in which the seller will provide the ratified contract to the buyer. If this is the case, it’s important to be especially vigilant in reading through every detail and understanding what you’re agreeing to.

Other Parties Involved

Here are the various parties involved in the signing and processing of the ratified contract, beyond you and the home seller that is:

• Title company: The title company is responsible for performing a title search on the property and ensuring that there are no outstanding liens or other legal issues that could impact the sale.
• Lender: If you’re taking out a mortgage to finance the purchase of the home, your lender will be involved in the process as well. The lender will need to approve the contract and provide final funding.
• Real estate agent: The real estate agent represents the seller in the transaction and is responsible for negotiating on their behalf, among other things.
• Escrow company: Escrow companies act as a neutral third party in transactions, holding money and documents until all conditions of the contract have been met.

What Happens After the Contract is Signed?

Once the contract is signed, you will assume ownership of the home — and your payments will begin. In most cases, the seller will vacate the home on or shortly after the closing date, which is when the title officially transfers to you.

Keep in mind that there may be some contingencies in the contract that need to be met before everything is finalized. These could include things like obtaining a mortgage, passing a home inspection, or getting the title cleared. Make sure you understand what you’re responsible for and when each step needs to be completed in order for the sale to go through.

For more on ratified contracts in the mortgage and homebuying realm, or to learn about any of our Branford mortgage services, speak to the pros at Primary Residential Mortgage today.

*PRMI NMLS 3094. PRMI is an Equal Housing Lender. Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. Programs, rates, terms, and conditions are subject to change and are subject to borrower(s) qualification. This is not a commitment to lend. Opinions expressed are solely my own and do not express the views of my employer.