So, You Are Saying There's a Chance?!
Yep, your offer has just been accepted and now the fun begins! Below are the 10 steps between your offer being accepted and closing.
1. The Option Period & Money
Under normal circumstances, the option period is anywhere from 7 to 10 days. The option period money is nonrefundable money in the form of a personal check that goes to the seller. This money must be delivered to the seller during the first three days of the contract. If selected in the sales contract, the option period money will go towards your closing costs at closing.
2. The Earnest Fee Money
Generally, the earnest fee money is 1% of the sales price that is delivered to the title company in the form of a personal check. This money is refundable up until the end of the option period. The earnest money is refundable at certain points after the option period has expired but it is not an easy task to achieve. Therefore you should be confident moving forward that you are going to purchase the home. The earnest money is kept at title at an escrow officer of that title company. At closing the earnest money is credited towards your closing costs.
3. The Inspection
The inspection occurs during the option period by a licensed inspector. During the inspection, you will receive a detailed report about your potential homes replacement and repair needs. The inspection should also give you piece of mind about your purchase.
4. Negotiating Repairs
After inspection is done, the seller and buyer negotiate repairs of the home. This is done in two ways, 1) the repairs are done by the seller before closing and the seller furnishes receipts as proof of the repair OR 2) the seller gives the buyer closing costs in lieu of repairs. This way you will do the repairs or replacements after closing.
5. The Home Insurance & the Home Warranty
It is important that during the option period you start researching home owner’s insurance policies as well as home warranty programs. Home owner’s insurance is required if you are obtaining a loan on the property. In general, home warranty programs cover certain items during the first year of home ownership. Both should be selected a couple days after the option period has expired.
6. The HOA Documents
The Home Owner’s Association Documents are delivered during the option period or escrow period. The purpose of the documents is to give you information about the rules and regulations of the HOA you are purchasing a home in. The documents will also give you an idea of the HOA’s budget, operating fees, and various other expenses.
7. The Title Commitment
The title commitment is delivered by the title company during the escrow period. This document will give you information on the current home owner as well as if there are liens on the property.
8. The Appraisal
Lenders require that homes have an appraisal to ensure that the value of the home meets their requirements. The appraisal is ordered by the lender after they confirm that you are qualified to purchase a home. The home must appraisal for the sales price listed on the sales contract. If the property does not appraise the buyer and seller will negotiate the sales price.
9. The Walk Through
Your next step is a final walk-through, arranged through myself, a week before closing. The goal is to ensure the property's condition hasn't changed since your last visit, that any agreed-upon repairs have been made and that the terms of your contract will be met.
10. The Closing
The Closing Disclosure is completed 3 business days before closing. Once closing instructions are received, documents are drawn up for closing. Even though the loan approval is received, these details must be finalized before the closing can take place. The closing will take approximately one hour. You will be asked to sign a number of official documents. The closing will take place at the title company office. It is best that you make outside arrangements for small children, so that you will have no distractions at the closing. Please bring your funds in the form of a cashier's check made payable to the Title Company or wire funds from your bank in advance. Many documents that you will will be notarized therefore you need to bring a VALID driver's license. Once both parties have signed, you will receive a phone call from the title company stating that funding has taken place which means you are officially a home owner. Congratulations! .
“It is rare to find a realtor who truly listens to what you want in a house. Kristen was amazing. She listened and was so proactive. She found us the perfect house. It was exactly what we wanted and needed. I recommend her to everyone I know. She really knows her stuff and cares about the people she works with.”
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