With trembling hands you’ve waited to see if your offer would be accepted on the house you can’t wait to call home. Joy fills your heart when your real estate agent tells you that the home seller accepted your offer. After you celebrate your victory, the unknown may sneak up on you and try to steal your joy as you begin to wonder what is going to happen next. Have no fear! We’re here to put your mind at ease with the basics of what happens once your offer is accepted.
Step One: Visit Your Lender
In the best case scenario, you’ve already received your pre-approval letter from the mortgage loan lender of your choice. In this case, you’ll need to visit your lender and begin the actual loan process. If you didn’t get a pre-approval before placing your offer, you’ll need to shop around for a lender. Compare several lenders and the options they provide for loans. Once you’ve chosen the one that suits your needs, apply for your mortgage loan and get that ball rolling.
Step Two: Home Appraisal & Inspections
Your mortgage lender should supply a professional home appraiser to take a look at the house and provide them with a report that helps them ensure that the home is worth what you plan to pay. If there is a gap between the appraisal price and the price you agreed to pay, the lender will let you know that your down payment amount needs to be changed or that you need to revisit the seller to negotiate a lower price.
Inspections should be ordered to make sure the home is in the condition you expect it to be in at the time of purchase. You may want to do different inspections for repairs needed, pests, and radon. The inspector will provide you with a report that can be used in the event of negotiations with the seller for repairs.
Step Three: Insurance Protection
It’s time to secure insurance protection to cover the house you plan to purchase. Be prepared to pay for this cost upfront. You will need proof of payment to supply to your mortgage lender. Depending on where you live, you may need specific insurances to cover flooding. As with any other part of the home buying process, do your research ahead of time to make sure you’re getting the best deal and exactly what you need.
Step Four: The Walk-Through
Take advantage of your right to do a final walk-through before the closing on the house. Keep a look out for anything that has changed since you were last on the property. If you find something that needs attention, make sure you bring it up to your real estate agent. They may recommend that you postpone the closing until everything is as it should be. This is an important step during the period before closing because anything you notice after the closing is complete is no longer something you can being before the seller.
Step Five: Closing Time
During the closing, you will sign all paperwork and be given the keys to your new home. Your real estate agent will be there to represent your best interest, and the seller’s agent may be present, as well. It isn’t unusual for a representative from the lender to be present with the closing officer. At this time, you’ll pay the money owed for closing costs. Your real estate agent will walk with you through this part of the home buying process to make sure everything is as it should be.
Buying a home can be an amazing experience. There’s no need to let fear of the unknown steal your joy of the moment. Stay in communication with your real estate agent, and they will be able to share their knowledge and experience to help make the transaction smooth.
Give Kathie Moore a call today at 651-351-4736 to tour available homes for sale in the area.