There is a lot to focus on when you are shopping for a new home. It may be easiest for you to break things down into specific areas. For example, focus on what you want in a home and looking for a place in your price range at first. Even if you want to look at luxury homes for sale, set a budget from the start. Once you find the right home, then you want to know what to expect with regards to putting in an offer and what happens then. Finally, you will want to know what to expect at closing. This article will focus on preparing you for what will happen once you have put in an offer on a home you want and that offer has been accepted:
You will put up earnest money
As soon as the seller agrees to your offer, you want to pay them some earnest money. This money will be a form of protection for the seller. They will be taking the home off the market and not be showing it to other interested parties. This means, if you back out of the deal, then they may have lost out on someone else who may have placed an offer on it and gone completely through with the sale. This money lets them know you are serious and they get to keep it if you suddenly change your mind. Your real estate agent will collect the earnest money from you and it will be for an amount that everyone agrees on. This money will end up going toward the purchase price of the house once the sale is going through.
Inspections should be taken care of as quickly as possible
Once you have the sales contract, you want to get started on having the inspections done. You want to have these completed as quickly as possible, so they don't cause things to be held up. There are a variety of inspections you may need to schedule and some of them include HVAC, structural, septic, pest, mold and radon inspections.
Lender documents need to be completed
As soon as you have the sales contract, you need to get together with your lender to start the lending process. Try to have everything together and ready to go, so the process moves as quickly and hassle free as possible. Communicate with your lender, making sure you are on track and there isn't anything else that they are going to need from you. You don't want to count on the fact that they will call you if there is a problem. It's better for you to stay on top of it since time is an issue.
The other things that will follow will include the title company doing their part, an appraiser doing their part to endure the house appraises for the loan amount, the purchasing of home owner's insurance, the turning on of the utilities and other services, the realtor will verify the closing date is still going to work, a final walkthrough should take place and then the deal will close. At this point, you are given the keys and are now the proud owner of that home!