What To Do After Your Offer Gets Accepted on a Home
This is part two to a two-part guide on how to have a plan for your home purchase. See last week’s post for information preceding the offer phase.
You’ve planned, you’ve saved, you’ve found a great home with the help of your real estate agent. You’ve made an offer. Maybe you had to endure a bidding war with another party. Maybe your first offer was the best. You get the phone call that says your offer was accepted.
Now what?
Once you’re under contract for your new home, it’s time to work through the contingencies in your purchase contract. Contingencies help protect you from making a poor investment decision by ensuring the home truly is in good condition and you’re paying a fair price. Let’s take a look.
Getting a Home Inspection
Getting a proper home inspection is one of the most important things you can do before you sign the contract. A quality home inspection will reveal details about the condition of the property that even the sharpest naked eye may have missed. Think structural damage, roof issues, and expensive repairs that could make or break the deal for you, or give you a chance to negotiate down the purchase price.
In addition to a standard home inspection, you can also conduct inspections for things like termites or radon. Your real estate agent can advise you as to whether or not the condition of the home calls for these extra tests.
Getting an Appraisal
Chances are, you’re getting a home loan, which means your lender will require an appraisal of the property. A professional appraisal reveals the true value of the home.
Before you make an offer on a home, it’s a good idea to be preapproved for a loan anyway. However, just because you’re preapproved for a $700,000 loan doesn’t mean the property requires that much money.
Let’s say you made an offer for $700,000, but the appraisal comes back at $600,000. Now, you may have the opportunity to revisit the purchase price with the seller. Again, it’s best to refer to your real estate agent for guidance on whether the appraisal should suggest negotiation.
Getting Final Mortgage Approval
Once again, this step only applies to you if you got a mortgage on your home. Getting final mortgage approval requires your lender to dig through the details of your finances with a fine-toothed comb to make sure you are eligible for the loan. While you’re under contract, you should be careful not to open a new credit card, change jobs, or do anything that could influence your earnings or debts.
Closing on Your Home
The final step in the home-buying process is closing on your home. You will receive a copy of your closing papers before the actual closing so you should know what to expect. Typically, as a buyer, you are responsible for closing costs, prorated property taxes, HOA fees, and homeowner’s insurance.
Whether on closing day or prior, make sure you ask your real estate agent for clarification on anything you’re paying for that you don’t understand. The better you comprehend your responsibilities on closing day, the quicker the paperwork will be over and you can get the keys to your new home.
Getting the Right Real Estate Pro to Guide You
In case you didn’t notice, having a knowledgeable real estate agent is imperative to complete all of the above steps without a hitch. You should look for someone with knowledge about each step of the home buying process, knowledge about your local area to point you in the right direction, and a network of other real estate professionals like lenders, home inspectors, and appraisers.
