The Due Diligence Process
Inspection & Title Search
Once we have a signed contract, your lender will begin processing your mortgage loan application. I will recommend which inspections should be performed on the house and schedule them with the selected inspectors (i.e. home inspection, well and septic, if necessary, termite and other wood-destroying insects, and any other detailed inspections of roof, HVAC or structural evaluation that may be needed). Also, during the Due Diligence period the closing attorney will perform a preliminary title search to confirm that there are no defects in the title, and the lender will order an appraisal of the property.
What If You Change Your Mind?
You may, at any time during the Due Diligence period, decide to cancel your contract to buy the house. You are not in breach of contract if you decide to cancel, but you will lose the Due Diligence Fee (and the cost of the inspections, survey, and appraisal if they have been performed). If you cancel the contract during this period, however, the Seller must refund your Earnest Money Deposit.