What happens once you get an offer accepted on your new house? Don’t celebrate yet; there are a few more steps you have to take before you make it to the closing table.
A typical transaction in our market is financed by a lender or bank. As a result, most transactions close in about 45 days.
One of the first things you need to do after your offer is accepted is to make sure that you apply for a mortgage. If you got pre-approved before you started looking at homes, then we have probably already had contact with your lender, so we can send your documentation directly to them.
Normally, it will take 30 to 35 days for the bank to approve your financing and send you a commitment letter. You need to apply for a mortgage as soon as possible because the bank will likely ask you for additional items, and you need to get those to them right away.
Before the deal closes, your lender will request an appraisal for the home to make sure that the house is worth what they are paying for it. That way, they are protected if you default on the loan.
If you don’t finance your home purchase because you plan to pay in cash, we will need a proof of funds letter to deliver to the seller within seven days. You may want to order an appraisal as a safeguard for yourself.
You also need to select an inspector and set up an inspection. Inspections run about $400 to $500. If the inspector finds something defective in the home, we will help you negotiate repairs with the seller or even get you out of the purchase, if that’s what you want.
You have the option to order additional inspections and tests on the home before you buy it. We recommend testing for radon gas. Radon is an odorless gas naturally produced from the ground that can cause cancer. If you are buying a home in a rural area, you may need to test your septic system. All of these inspections typically run about 10 to 14 days.
We help coordinate with you so this entire process goes smoothly. We will send your paperwork to the lender, schedule your inspections, and attend them with you so that we know if there is anything we need to negotiate with the seller.
Knowing what to expect from the home buying process will help you make it successfully to the closing table. If you have any other questions about this process or about real estate in general, give me a call or send me an email. I would be happy to help you!