Here’s What’s Next After Your Home Offer Has Been Accepted

 

Congratulations!

 

You’ve established that you’re ready to own a home and found the home of your dreams – but what happens once you submit your offer? If you’re new to the home buying process, Here’s what’s next after your home offer has been accepted. I’ll explain everything from deposits to inspections to settlement.

 

Deposit

 

The deposit is usually a percentage of the purchase price, it can be anywhere from 1% to 5% of your home’s sale price, depending on how much risk you want to take on as a buyer and how much money you have available in savings. Deposit money is held in escrow by the title company, listing agent’s office or buyer’s agent office. You have up to 5 days to send over a wire or a cashier’s check to whoever is holding escrow. That money is subtracted from your closing costs at settlement.

 

Title

 

Once you’ve reached an agreement with the seller, it’s time to make sure the property is yours. This process involves two steps: title search and title insurance.

 

Title Search

 

A title search is a search of public records to determine if there are any claims against the property. It will tell you whether there is any outstanding debt on the property, and whether or not there are any liens against it. A title search can also include a search of deed restrictions, easements and other documents affecting the property.

 

Title Insurance

 

Once you know that there are no claims against your new property, you should consider purchasing title insurance. Title insurance protects you financially if something goes wrong during the ownership period — for example, if someone else has a claim against your home and sues to recover their money or if they assume ownership of your home by taking over payments without permission.

 

 

The lender will begin the process of underwriting your mortgage. This means they’ll run a credit check and require documentation of income and expenses. They’ll also want to see that you have enough money to cover your down payment plus any closing costs associated with purchasing your home.

 

 

Bank statements (2 months)

 

Tax Returns (2 years)

 

Paystubs (1 month)

 

Photo of Current Driver’s license

 

If everything checks out, they will issue you a commitment letter that outlines the terms of your loan. This document will include details like the interest rate and term length of your new mortgage as well as any fees that may be charged by your lender (e.g., mortgage insurance or origination fees).

 

The inspection process is important in part because it helps protect both parties. Inspections can reveal issues with the home that weren’t apparent when you first looked at it or visited for an open house.

 

Inspectors are professionals who are responsible for looking at a property’s systems and structures to ensure they meet code requirements and don’t pose any safety hazards. You’ll want to do some research on inspectors before making your selection; there are plenty of options out there. Some inspectors work directly for buyers or sellers; others may be hired by lenders as part of their approval process.

 

 

After the inspection is complete, you’ll receive a report that details any deficiencies with the home or property. The report will include photos and recommendations for repairs or replacements that need to be addressed before closing. The report may also include recommendations for upgrades or other changes to make the home more functional and safe.

 

Inspectors charge up to $500 for a standard inspection. You have up to 10 days to complete your inspection, get the report back, and submit for any repairs to be taken care of.

 

 

Once an offer has been accepted, the buyer will typically arrange for an appraisal to ensure that the home is worth what they are paying. This can be used as a bargaining chip if you’re looking for a lower price or want to negotiate a higher price.

 

The appraisal process can take anywhere from two days to two weeks depending on how quickly your lender gets back with them and whether or not there are any problems with the inspection report. Once it’s complete, they will notify both parties of their findings so everyone knows where things stand moving forward–whether or not there needs more work done before closing day (or longer).

 

An appraisal can cost up to $800 and is added into your closing costs.

 

 

Settlement is the process of finalizing the terms of your contract, completing your transaction and getting your keys. It’s important to work with your real estate agent and attorney to review contracts and ensure that there are no surprises at closing. This may include:

 

 

Your lender will give you the exact amount of money you need to bring to the table in the form of a cashier’s check. You’ll also want to make sure that everything is ready on your end–this includes paying off any debts you owe on current properties or preparing for new ones if applicable!

 

The entire home buying process can seem overwhelming at first glance but don’t worry – the right agent will break it down step by step. If you’re looking to buy a home in the near future, make sure that you have access to all of the information necessary for making an informed decision.