Purchase contract to closing flow

The following is a summary and basic flow a Buyer can use to understand the process to purchase an office or warehouse property in the Austin area.

First steps in purchasing and office or warehouse property

  • Discussions should take place pro-actively with your lender
  • Get pre-approved  or use a mortgage broker
  • Loan application and credit history verified by lender
  • Appraisal done and loan submitted to committee for approval
  • Lender approves the loan

Simultaneously with the Loan submission

  • Pending a 3rd party financing addendum- purchase contract submitted to Title Company
  • Contract is received by Title Company
  • Escrow department opens the order
  • Title department receives the order
  • Escrow team coordinates transaction while examiner researches the title of the property
  • Commitment for Title insurance for the office or warehouse property is issued

Once the lender approves the Buyer’s loan request and the Title company’s research is completed a closing date is set to close on the office or warehouse property. It is critical in a purchase situation unless the Buyer is paying all cash that they have pro-active discussions with the lender. Even if the Buyer has excellent credit, depending on the lender they may or may not be able to get financing in place. Financing with lenders in today’s market has quite a few conditions to be met. If these conditions are not met, it is very possible the Buyer can attain financing through another lending institution.

Shire Commercial as a Buyer’s representative can recommend lenders to their clients that have a proven history of getting the financing done for buyers.

Authored by: Steve Shire

President of Shire Commercial | Austin, TX