What happens after my offer is accepted? Congratulations, you just been notified that you are under contract to buy your home. You may feel like the work is done. However, there is still much to do before you own your new home. The purchase agreement you signed has many tasks and dates that must be met by the home buyer and the seller. This article will explain what happens after my offer is accepted. This article will help you stay on track and stay in compliance with your purchase agreement for your next home.
Deliver Earnest Money
You probably agreed to provide earnest money as part of the purchase agreement. There needs to be some cash involved in the transaction to protect the seller’s interests while they take their house off the market. Your earnest money will be applied to the down payment or your closing costs as long as the transaction closes.
There are many ways to get your earnest money back if the deal falls apart. A good Realtor will have explained this to you prior to signing the purchase agreement. If not, ask your Realtor to explain this to you now.
Some Realtors will collect earnest money from you before they submit your offer. Most Realtors will have you deliver the earnest money to the title company. Whatever arrangement is made, make sure that your earnest money is delivered on time and in the proper payment form per the purchase agreement.
Property Inspections & Home Warranty
Your purchase agreement will have dates associated with the home inspections. There is typically three dates regarding home inspections, the date homes inspections are to be completed, the date the buyer requests the seller to make repairs, date the buyer and seller agree on repairs. There are several different types of home inspections that may be performed. It is important to make sure all three steps described earlier are completed according to the purchase agreement.
There are times when the buyer and seller do not agree on the repairs to be made. Make sure you understand the purchase agreement when it comes to this item.
Are you going to get a home warranty with the purchase of your home? If yes, talk to the home inspector about a home warranty or you can get a home warranty from other companies offering warranties. Make sure you understand the terms and conditions of the warranty as they are all different. Shop around to get the best value. Also make sure to provide your Realtor and the title company with an invoice. Make sure the company offering the warranty has the financial backing to support the warranty.
Provide your lender a copy of the fully executed purchase agreement as soon as possible. The mortgage process typically takes longer than all other items necessary to close on your home. Your lender will require a lot of documentation throughout this transaction. Return all documentation to your lender as soon as possible. Make sure you are in regular contact with your lender to verify they are on track to meet the time line to complete the transaction. A good Realtor will also stay in contact with your lender to help meet the schedule.
My experience is most delays in closing are associated with the loan process.
Seller’s Property Disclosure
A disclosure about the home you are buying is normally provided by the seller. The purchase agreement will provide dates when you should receive the disclosure, when you need to raise any issues or concern, resolve any concerns. Take the time to review the document carefully and raise any concerns to your Realtor.
Make Arrangements To Move
When is the best time to make arrangements to move? This is a tough question because there are many ways a deal can fall apart. The most common areas where deals fall apart are the loan approval process, the appraisal, or the home inspections. You should start looking for movers early on in the process. However, you may not want to make a final commitment until later in the process. Shop around and find the moving company that best meets your needs and provides you the most flexibility.
Title Commitment For Your New Home
The title company will issue a title commitment that reviews the title history of the property and discloses any liens against the property that need to be resolved before closing. This is an important step to insure you will receive a clear and marketable title. Most title commitments are straight forward and require no additional work on your part. Just be sure to review it thoroughly before moving on to the next step.
Home Owner’s Association Documents and Conveniences, Conditions, & Restrictions (CC&Rs)
Most home purchased will have some type of CC&Rs. CC&Rs are used to regulate the use, appearance, and maintenance of a property.
Home Owners Association documents are more rules that apply to home owners. All home owners must comply with the rules of the HOA. You will also receive financial documents about the HOA. The financials allow you to determine the financial health of the HOA.
You will be provided a copy of the CC&Rs and the HOA documents (if your home is in an HOA). Make sure to review these documents carefully as you will be required to live according to these rules.
You have 7 days to review HOA documents according to New Mexico law. You can terminate the purchase agreement if you cannot agree to the terms in the HOA documents. Make sure to notify your Realtor within 7 days of receipt if you cannot live by the HOA rules.
Appraisal For Your New Home
The appraisal will be ordered by your lender. An appraisal is an opinion of value of the home provided by a professional that has been through extensive training. In the current Albuquerque market, buyers are paying for the appraisal up front and reimbursed at closing. Buyers may want to have the appraisal ordered after inspections are complete and repairs are negotiated.
Your lender will make all loans based on the lesser of the purchase price or the appraised value, whichever is less. Make sure you understand the impact of an appraisal on your purchase agreement.
Home Owners Insurance
Your lender will require home owner’s insurance policy on the property that you are purchasing. Your purchase agreement will contain time frames for you to obtain your insurance. Make sure you understand the time frames in your purchase agreement. Shop around to find the best value. Notify your lender as soon has you have selected your home owner’s insurance policy.
Turn On Utilities To Your New House
Now that you are past all of the major steps required to purchase your home, you will want to get your utilities turned on or transferred into your name. Make sure to contact all the utility companies and make arrangements. Some utilities require deposits and some require that you show up in person to make arrangements.
Schedule Closing Date & Time
Your purchase agreement will have an agreed upon closing date. Your Realtor should set up a time to close that meets your needs and the availability of the title company. Plan ahead to make sure the title company can accommodate your needs.
I recommend completing the final walk through as late as possible before the closing. The purpose of a final walkthrough is to verify the home is in the condition as when you viewed the home and all seller’s personal belongings have been moved out. The walkthrough is not to see if you still like the home.
Close The Transaction
You will meet at the title company on the day of closing. Make sure you bring your driver’s license and a cashier’s check or wire transfer for the amount you need to bring to closing. This amount will be provided to you by your lender. It normally takes 30 minutes to 1 hour to close on the transactions.
In Albuquerque, the buyer and seller will close at separate times.
Your lender will review all documents after the buyer and seller have signed them. Your lender will fund the transaction and the title company will record all documents at the county courthouse.
If the buyer and seller close in the morning and your lender can approve all documents in a timely manner, you MAY get keys to your new home the same day as closing. However, I recommend you plan on receiving the keys to your new home the next business day after closing.
I hope this article helps you answer the question what happens after my offer is accepted? Your purchase agreement has several tasks and the dates these tasks must be completed. You, your Realtor, and lender must communicate to make sure you meet all the tasks within the time frame on the purchase agreement. Missing any tasks or dates may mean you are in breach of the contract. You may also lose some of your rights in the agreement if you miss the schedule. Make sure you are meeting the tasks and dates in your purchase agreement. At Myers & Myers Real Estate we keep all on transactions on a visual schedule to make sure we keep each transaction on schedule. Check out all our great tips for Albuquerque home buyers.