So you just made an offer on a home and the seller accepted…congratulations!
You must be elated…over the moon…as they say. But don’t get too excited.
I’m sorry to bring the gravity of the situation back down to earth but….getting an offer accepted by a seller is just the first of many things that need to be accomplished before you get to a closing table and complete your purchase. Here’s the rest…
You will book a home inspection within 24 hours of getting an accepted offer.
A licensed home inspector will meet you at the home you are purchasing and evaluate the home. Though not required, you should be present during the inspection. Your inspector will check the structure of the home, including the roof and basement, the HVAC system, electric, plumbing, windows, doors…just about every part of the house…and give you detailed report of their findings. There is no pass or fail in a home inspection.
Once you receive your inspection report (usually within 24 hours), you will go over it with your attorney and real estate broker. If there are any items that you agree need to be addressed, your broker will do so. That includes repairs or credits for repairs.
After any renegotiating, the seller’s attorney will draft a contract of sale for the house you are purchasing and send it over to your attorney.
Buyer’s attorney will schedule a time for you to come in to their office for you to sign the contract and leave an earnest deposit. Buyer’s attorney will then email a copy of the signed contract AND overnight the physical contract with earnest deposit check to the seller’s attorney.
The sellers will go in to their attorney’s office and sign the contract. The seller’s attorney will then deposit the earnest check in an attorney escrow account until closing. Both attorney’s agree and you have an executed contract.
You will send a copy of the executed contract to your bank or mortgage broker and complete a loan application.
You will meet a flurry of expectations from your lender to secure a loan.
Once met, your lender will issue a commitment letter.
Buyer attorney will run title and order a survey, if one isn’t already available.
If title is clear, title company will prepare a title policy.
If title isn’t clear, both attorneys will attempt to remedy any title issues.
When title is clear and the lender has issued a clear to close, the bank attorney will set the closing date.
You, the seller, both buyer and seller attorney’s, and a title closer will attend the closing and officially close escrow.
Congratulations! Now you can relax and enjoy your new home!