I got an email today saying we are cleared to close. This means the loan is ready to go so long as all the other contingencies have been met. I might have touched on this before but even if I have, we can all use refreshers every now and then. 

For almost every real estate purchase, there are three main contingencies: the appraisal, the inspection, and the financing. I’ve already talked about the appraisal for this purchase and we easily cleared that hurdle. 

As for the financing, I was pre-approved at the beginning of the process, so this was more of a waiting game than anything else. The underwriter has to verify the source of all loans and make sure I am going to make my payments. I think I had to sign that I have no HOA payments for any property at least 3 times. It’s a tedious process but we made it through. 

All that’s left for the loan is for me to sign the final documents with a notary and wire over the remaining funds. I am excited about this step as it means I can make other payments I have had to hold off on during escrow. 

Which leaves us with the inspection. This is the most concerning of the contingencies in my opinion. Who knows what the inspector will find! I found myself a little gun shy in this regard because of the chaos that has occured with our first investment property. 

The inspector sent over the report and there were 14 items that he brought to our attention. Steve, the seller, immediately agreed to fix all 12. The other two have to do with old building materials and aren’t really fixable. Steve has since sent photos of the corrected work and I am trepidatiously ready to clear this contingency. 

I think the main reason I feel uncertain is because I did not go out to see this property. I know that is fairly standard in REI, but it’s a first for me. The inspector, who has worked with rent to retirement properties in the past, did say this was one of the better properties he has seen. 

All this to say that we will be closing in the next day or two. Then, on to the tenant search!