10 Step Checklist for Homebuyers Purchasing a house requires a lot of time, energy and focus. Overcoming the process without mistakes or going crazy can be difficult and can be exhausting
Your Offer Has Been Accepted, Now What?
Dated: August 29 2020
10 Step Checklist for Homebuyers
Purchasing a house requires a lot of time, energy and focus. Overcoming the process without mistakes or going crazy can be difficult and can be exhausting to say the least.
After your offer has been accepted and the contract is signed, it can feel like your job is done and it's time to celebrate. Unfortunately, that isn't entirely the case. There are several other tasks that need to be completed before the deal is done.
The following checklist will help guide you through the steps after your offer has been accepted. If these steps aren't completed you could face loosing the home purchase or very minimum delaying the closing. Let's work together to make sure this deal goes through! I will be with you every step of the way and checking in frequently to make sure we stay on track. :)
1. Earnest Money
Earnest money is your proof as a buyer that you "earnestly" want to purchase their home. This deposit involved at the beginning of the transaction protects the seller's interests as they take their house off the market. If you back out of the deal for reasons other than home inspection or the apraisal, the seller can keep your money.
2. Property Inspections
Once you have an executed sales contract in hand, the clock starts on your inspection period. Make sure you know how long your inspection period is, and that you complete your inspections on time. There are multiple types of inspections that you may need to schedule but the standard home inspection is the most common. Also, make sure that you resolve any inspection issues within the time agreed upon in your sales contract.
3. Lender Docs
As soon as you have your signed contract, you or your Realtor will need to communicate with your mortgage lender to make sure that they get a copy of the contract. When they recieve it, they will start the mortgage process for your transaction. There will be several documents your lender will start asking you for so be sure to get it to them ASAP! (Some lenders are not as efficient to checking in with you or keeping you updated on progress. If this is the case make sure you check in with them to erify that they are on track) Your Realtor can help you with this as well.
If a lender does not complete the loan process on time, it can cause you to be in breach of contract by not closing on time. This violation will allow the seller to terminate the transaction and keep your earnest money. Please be sure to avoid this situation.
This is handled by a law office or Title Search Company. They will review the history of the home records and disclose any liens against the property that will have to be resolved before moving forward. This is normally ordered by your lender and requires no additional work on your part.
After you are done with the inspection process and isssues are resolved please inform your lender. This will allow them to move forward and order an appraisal to verify the value of the home.
6. Home Insurance and Warranties
Your lender will require you to have a Home Owner's Insurance Policy on the property before closing. It is wise to shop around chose a policy that works best for you. Your Lender and Realtor will need to know when you have a plan in place.
Home Warranties are also available in real estate transaction. Some sellers will provide an allowance for you to purchase a home warranty.
7. Schedule Closing
Your sales contract will have a closing date that is a guidance as to when your closing will actually set place. After the loan is out of underwriting and you get a clear to close you will informed of when your closing is scheduled.
8. Turn on Utilities
Sometimes, especially during the busy summer months, utility companies have a wait time to get utilities turned on or transferred. Please be sure to cooridinate as to when you will have possession of the home.
9. Final Walkthrough
The purpose of the final walkthrough is to verify that repairs are complete, that all of the seller's personal belongings are removed and to make sure that the home is ready to move in.
This is not the time to renegotiate repair itmes on the sales contract. It is just a safeguard to make sure that no significant issues arise that ould cause the closing to terminate, which would likely be followed by legal proceeding to mitigate the problems.
10. On the day of closing please be prepared to have your driver's license and certified funds if applicable. You will meet at the title company to sign all of the required documents. This doesn't normally take longer than an hour. As the buyer, if you're getting a loan, you will be signing the paperwork for that here as well.
Now the house is YOURS!!!
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