Your agent found you the perfect home and your offer came in at a price the seller liked! You’re heading into escrow, so what should you be prepared for? Your offer was accepted, but there are still some steps to take!
In a market as competitive as today’s, having your offer accepted is cause for celebration. Still, you may want to hold off on popping the really expensive champagne until after you’ve closed escrow. Our guide walks you through those final steps of buying a home.
If this is not your first home purchase, you may have some idea of what you’re in for, but it won’t just be first home buyers who could be in for a shock. In the past years, the underwriting process has undergone changes, so unless you are making an all-cash offer and are prepared to buy “as is,” here are some things to be aware of.
Houses come with a hefty price tag, and you’re likely going to be making up the balance in several transactions. So as soon as your offer has been accepted, be prepared to:
The earnest money deposit shows the seller that you are serious about the purchase, and you will only have that money refunded to you if you pull your offer within the contingency period you agreed to in your contract.
There are other expenses to plan for while you are in escrow, as there are many different types of inspections that need to be done for you to feel comfortable making it to the finish line.
Unless you have waived contingencies, you will want to make sure that:
Your realtor will guide you through this process and use professionals that they trust to give you the right information to make an informed decision. If any issues come to light during the inspection process, you can discuss with your realtor what can easily be rectified and what is a deal-breaker.
If you are taking out a mortgage, you will need to have your loan underwritten – this means that the lender needs to make sure that:
You can make this process go smoothly by:
Be prepared to have:
If you plan on paying your deposit with money you’ve been keeping in a shoebox under your bed, you may want to think again. The reason: you will need to show that the money you are using was obtained legally.
Remember – even if you have been preapproved, you will still need to provide information on your finances and prove your employment right up until the day you close. If your loan is denied outside of your contingency period, you will lose your earnest money deposit. So make sure your broker has all your updated information so they can advise you.
During the escrow process, you will have a lot on your mind. After all, you are about to make a huge financial commitment. Not to mention you are preparing for the logistical challenges of moving all your possessions into your new home. So, if you have a demanding full-time job, be prepared to factor in time off to be present at inspections and meet with a notary to get your documents in order. If you are making a joint purchase, you may want to coordinate your schedules so you can meet with a notary at the same time. Otherwise, be prepared to pay their fee twice to meet with you both separately. These documents will need to go to your escrow company. So be sure to find out where they are located so that when you do need to go in in person, you are aware of the travel time.
Your closing day may not be the day you actually get the keys to your house. Because the property transfer needs to be recorded, which can take a few hours. Still, make sure you ask your realtor about the timing so you can get that bottle of champagne ready for the moment you take your first steps into your new home!!
Assemble your team by contacting Century 21 Peak who can assist you in finding all the people you need from first open home to picking up the keys to your new home!