Ocean City Maryland Real Estate Buying Process: The Contract Phase
Now that you have found an Ocean City condo or Ocean Pines home that fits your wants and needs in the property search phase and we have negotiated an agreement that both you and the Seller are happy with we will then enter the contract phase.  As an experienced, full time Ocean City MD real estate agent and Ocean Pines real estate agent this is the phase where we can provide substantial value and make your life a lot easier.  The contract phase is the all important steps in between getting an offer accepted on an Ocean City property or Ocean Pines property and getting through to a successful settlement of that property.   The contract phase consists of the mortgage process, title phase, appraisals, inspections, condo review, securing any necessary insurance, transferring utilities and anything else that may be necessary in order to effect a successful settlement of your Ocean City condo or Ocean Pines home. As experienced Ocean City Realtors and Ocean Pines Realtors we do this everyday and have the systems and procedures in place to ensure your Ocean City MD real estate or Ocean Pines md real estate purchase goes smoothly and is an enjoyable process. We are of the belief that buying real estate in the Ocean City MD area should be a fun and enjoyable process and that is what we as Ocean City Realtors and Ocean Pines realtors strive to achieve.

Mortgage Process
The first step in the process is to get the mortgage phase going, which you will likely have already started by reaching out to a lender during the property search phase.  If not we will get you in touch with an experienced Ocean City lender to assist you with your Ocean City MD real estate or Ocean Pines MD real estate purchase.  The first thing we will secure is a approval letter that we will submit to the Sellers agent to let the Sellers know we have started the mortgage process and that you are financially capable of purchasing the property.
I will then provide the lender with a ratified copy of the contract and all related addendum.  They will then get in touch with you to go through the application process and order the appraisal.  This is the point at which you will provide them with all of the supporting documentation they will need to secure the loan such as tax returns, pay stubs, bank statements, etc.  The bank will take the application, completed appraisal and your financial documents and submit them to the bank underwriters whom will subsequently review the documents and overall deal and then approve the loan, assuming there are no issues.  Once they approve the loan they will provide us with a commitment letter that I will send to the sellers agent letting them know the financing is in place and that the financing contingency in the contract has been satisfied.

Deed and Title Phase
While we are working through the mortgage process we will also have the deed and title work performed. In Maryland we use settlement attorneys to do the title searches, prepare the deeds and they will coordinate with the lender and conduct the actual settlement of the Ocean City property or Ocean Pines property that you are buying. We have a local law firm that we work with whom is very thorough, cost effective and always available to you.  The settlement attorney will perform a title search on your behalf to ensure that the deed is free and clear with no encumbrances. In the event that there is a problem they will see what is necessary to rectify it and get it taken care of.  They will also prepare the deeds which will officially transfer the property from the seller to you as the new owner at settlement. The settlement attorney will offer you title insurance which will be required by the lender up to the amount of their financial exposure. In addition you can purchase a supplemental policy to cover the entire purchase price. Once the financing is in place, deed and title work are complete and all documents are prepared the settlement attorney will pull it all together and conduct the physical settlement and disburse all funds for your purchase.

Inspections
It is your right as the Buyer to have any inspections you would like to have performed on the Ocean City condos or Ocean Pines homes that you are buying.  Typically Buyers elect to have the standard home inspection done.  This inspection will look at all of the mechanical systems of the property, appliances and the structure to ensure they are sound and in good working order.  Once the inspection is complete we will be provided with a comprehensive report outlining any issues that may be present.  We will then go through the report and see which items, if any you would like to have addressed.  I will then draw up the necessary addendum and forward it to the Seller and request that the items be addressed either through providing you a credit or physically repairing the items, whichever you would prefer.  Depending on the structure and terms of the deal the Seller can either agree to rectify the items or decide not to.  The ball will then be back in your court as to whether you want to move forward and take care of the items yourself or request to be released from the contract and move on to another property.

Certain properties and the results of the initial home inspection may call for additional inspections.  For instance some bank sale properties have been closed up for some time and there is usually surface mold in some of them.  In a situation like this you may want to have a mold inspection to ensure that it is just surface mold and not something more serious.  In addition the results of the initial inspection may produce items that need to be diagnosed further to determine the actual problem and costs associated with fixing them.  For example the home inspector may notice that the HVAC system is not heating and cooling to the proper levels.  We would then contact an HVAC technician to come out, diagnose the problem and provide us with an estimate to repair it.  We will then have this information at our disposal when we negotiate with Seller or determine if you want to move forward in the event that you are going to be responsible for repairing these items.

Condominium Association and Home Owners Association Review Phase
Anytime you buy Ocean City condos or Ocean City Homes that are inside of homeowners associations you will be entitled to a review period per Maryland law.  This process enables you an opportunity to review the association that you are buying into and ensure that is fiscally sound and in good shape going forward. Once an agreement is entered into the Seller of the property will be responsible for ordering a resale package from the property management company that handles the particular Ocean City property.  We will typically receive this package 7-10 days from the time of contract acceptance.  The resale package will include the associations budget, balance sheet showing current accounts and balances, insurance binders, bylaws, rules and regulations, minutes from recent meetings, resale certificate, etc.  Once you receive this information you will have 7 days to review it for a Ocean City condominium association and 5 days for a Ocean City home owners association, such as Ocean Pines.  During this period we will get any questions that you may have answered and ensure you are buying into a sound and healthy association.  If there is something that you are not comfortable with and we can not get it resolved to your satisfaction you can be released from the contract during this time frame without stating a reason and the Seller has no recourse against you.  This is an important and valuable step in the overall buying process that ensures the investment your buying is in a well run building, ultimately preserving your investment and eliminating the potential for future special assessments.

The Banks Condo Review
In addition to approving you for your Ocean City Maryland real estate purchase the mortgage lenders now must approve the particular building that you are buying into.  We are familiar with the process and will handle it for you.  In a nut shell the bank has a questionnaire that they need filled out along with some supporting documentation that we will get for them.  This will then go into underwriting with the appraisal and your financials for final approval.  The red flags that banks do not want to see are large amounts of commercial space, limited reserves, delinquent fees, etc.  We are aware of these rules and regulations as well as the buildings that could be a potential problem and will let you know about them ahead of time.

Appraisal
When there is a mortgage involved the bank will require that an appraisal be performed to substantiate the value of the property that they are lending on.  Once we have sent the contract to the bank and you have made formal loan application the bank will then order the appraisal.  We will arrange for the appraiser to gain access to the property and assist them with comparable property sale info and other supporting documentation if necessary.  As we will have looked at recent comparable sales to determine value and your offer price when we prepared the offer the appraisal phase typically isn’t a problem.


Ocean City Real Estate Insurance
For your own peace of mind and the banks you will need to secure insurance for your Ocean City MD Real Estate purchase.  When you buy into an Ocean City Condominium Association their will typically be a master insurance policy in place that will cover all of your fire, flood and hazard insurance, which will be covered by your condo fee.  In this case the bank will require and you will want an HO6 policy, otherwise known as contents insurance, which will cover your personal belongings, furniture and improvements to the property.  Typically the bank will require coverage for 20% of the appraised value of the Ocean City Condo.  This is best to be secured through the same company that holds the master policy for the particular Ocean City building as you will typically receive a discount and in the event that there is a problem you will only be dealing with one insurance company as opposed to multiple.  
For Ocean City homes, Ocean Pines homes and other properties not covered through home owners associations you will need to secure your typical home owners insurance, similar to what you currently have on your primary home.  The bank will require a policy to be in effect that covers the replacement value of the specific Ocean City property or Ocean Pines property that you are buying at the time of settlement.  As we are surrounded by water with the Ocean and various Bays flood insurance is required in some situations for properties that may not be directly on the water but close to it.  It is a best to contact a local insurance company for your insurance needs as they are familiar with the process, coverages and 2nd home policies.  Most out of town insurance companies will not insure property in coastal areas as they are not familiar with it and do not have the necessary channels in place.  I would be glad to get you in touch with a local agent to address any specific questions that you may have.
Utilities
Once all of the contingencies are met and we have received final loan approval I will email you the various contact numbers for you to arrange the transfer of all of the utilities into your name.  Typically all that needs to be transferred is the electric, gas and cable which requires a simple phone call to each provider.  The water and sewer will transfer automatically at settlement on the Ocean City property or Ocean Pines property.

Final Walk Through
On the day of settlement I will meet you at the Ocean City condo or Ocean Pines home a few hours before settlement to perform a walk through of the property.  During the walk through will will ensure that any relevant inspection items were repaired, all included furniture and appliances are still there and that the property is in the same condition as when you submitted the offer.  There typically are not any problems, however if there are we will get them resolved prior to you signing any of the documents at closing.

Though this is a daunting list with a lot of steps and components involved we can virtually guarantee you a smooth contract phase and an easy settlement.  As an experienced Ocean City MD real estate agent and Ocean Pines real estate agent agent I have the systems and procedures in place to ensure that this happens.  We do this day in and day out with great success, just look at what our current clients have to say.  Many of my clients have given me permission to have you contact them if you would like.  We do this full time and are always available to you which is a rarity in my line of work.  If you would like to discuss this process in greater detail or have any other questions concerning Ocean City Maryland Real Estate or Ocean Pines Real Estate feel free to contact me directly anytime at 443-614-9179 or by email.