What's Next After A Home Seller Accepts Your Purchase Offer?
The home purchase process consists of multiple steps, each with its significance. For example, you still have much to do after a home seller accepts your purchase offer. Below are some things to do once you have settled on a price with the seller.
Inspect the House
Property inspection is part of due diligence during a home purchase. The inspection will reveal the house's current structural condition. Use the inspection report to determine whether to proceed with the purchase, cancel the transaction, or negotiate repairs with the seller. Schedule the inspection as soon as possible to allow you to proceed with the other steps.
Process the mortgage
Ideally, you should look for mortgage preapproval before you start your house hunt. Start the mortgage hunting process immediately if you don't have preapproval. If you have a mortgage preapproval, contact the lender so that they can finalize the loan. The lender will require certain documents from you, such as tax returns, pay stubs, bank statements, and credit verification.
Avail the Closing Funds
In addition to the mortgage, you need additional money to conclude the purchase. The closing funds cover things like appraisal fees, mortgage costs, title search fees, and survey fees. According to investopedia.com, expect to pay between 2% and 5% of the home purchase price on closing costs.
The amount can be significant, so you should ensure you have the money before closing. Say you need to sell something, liquidate some stocks, or process a personal loan. Start those processes to have the cash ready by the closing date.
Set a Closing Date
You gain legal ownership of the property on the closing date. Thus, the closing date is when you transfer the remaining purchase funds, sign the deeds and transfer documents, and pay any outstanding closing costs. If you haven't agreed on a firm closing date with the seller, now is the time to do it. Set a date you know you will be available and can meet all the requirements.
Prepare for the Final Walkthrough
You must also schedule a final walkthrough a day or two before closing. You need the opportunity to inspect the house one more time before you legally own it. You can use the inspection to verify that the house is in the same condition it was when you agreed to purchase it. For example, you need to confirm that the seller has not removed something they shouldn't.
To learn more about the home-buying process, reach out to a residential real estate agent.
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