Home Buying: 

What happens now that my offer has been accepted?

July 16, 2020

So you found a house you love, we sent in our best offer, and it was accepted! Now what?! The process after an offer is accepted is complex. As your Realtor, I will keep track of all the to do's and our timeline. My job is to walk you through this process, working closely with your mortgage broker/lender and your Escrow officer to ensure things go smoothly. So although this list may seem daunting- especially for my first time home buyers trying to make sense of it!- just know I'm right beside you ensuring all the boxes are checked and we get to a successful close. 

1. Send Off The Earnest Money- Once the offer is accepted, you will have 3 days to get your earnest money to the title company via check or wire transfer. This money is held as a deposit and is applied towards the sale price at closing. If the deal is unable to close due to either party canceling during the inspection period or because you are unable to obtain financing as laid out in the terms of the contract this money will be refunded to you. 1% of the purchase price is a common amount offered as earnest money although this amount is always negotiable. 

2. Secure Your Financing- Once you have an accepted offer and are under contract you will return to your preferred lender to finalize the loan details such as down payment, interest rate, payment schedule, and other details associated with the loan. 

3. Purchase Title Insurance- Once your earnest money is at the title office, they will contact you and have you purchase title insurance. The title company will do a historical review of the property to ensure there are no claims against the home. The insurance policy protects you from an errors in the records or in the review process. 

4. Schedule Inspection and negotiate repairs- Once under contract you will have 10 days to do your due diligence. This is when you will may have a home inspector come in and any other professionals to ensure the property meets your expectations. If it does, we send notice to the sellers letting them know that you accept the premise. If the property does not meet your expectations we can ask for repairs to be made or can elect to cancel the contract. There is often some back and forth negotiations with the buyers and sellers during this time to arrive on remedy that feels fair to everyone. For financed offers, the bank will have some fixed standards. As your realtor, I will guide you through this process. 

5. Order Appraisal- If the bank will be financing the property, you will be required to do an appraisal. A city appraiser will come out and access the property, ensuring that it is worth the amount you are taking the loan out for. The bank will not fully finance your loan if the appraisal comes back lower than the purchase price. At that point, we can attempt to re-negotiate the purchase price with the seller or you may choose to bring the difference in cash to closing. The standard financing contingency in the purchase contract also allows for you to cancel the contract. 

5. Final Walk Through- Once the inspection has been completed and all repairs have been agreed upon/made we will have the opportunity to do a final walk through before close. This is where we will ensure there have been no changes to the property and agreed upon repairs have been completed. The final walk through is generally 3-5 days prior to closing. 

6. Closing Day! We will meet at the title company to sign off on all the paperwork and complete the settlement. The settlement includes closing costs, legal fees, property adjustments and transfer taxes. Your loan provider will go over these costs with you ahead of time so you know exactly what will be owed that day. You will receive the keys and any other entry devices such as a garage opener at this time! 

Have more questions on the buying process? I am here to help! 

Contact Me