Congratulations on having your offer accepted! The period from offer acceptance to the closing date is an exciting and crucial time in the home buying process. In this article, we'll guide you through what to expect during this period and provide a general timeline of events.
- Contract Execution and Attorney Review: After your offer is accepted, the next step is the execution of the purchase contract. This is when both you and the seller sign the agreement, solidifying the terms and conditions of the sale. The contract is then sent to your Real Estate Attorney for review. They will carefully examine the document to ensure that your rights and interests are protected. They may negotiate any necessary changes or contingencies on your behalf.
- Mortgage Application and Processing: If you are obtaining a mortgage, it's time to submit your formal loan application to your chosen lender. You'll need to provide them with the necessary documentation, such as income verification, bank statements, and credit history. The lender will then begin the process of underwriting your loan, assessing your creditworthiness and the property's value. They may also order an appraisal and conduct a title search to ensure there are no liens or other issues that could affect the property's ownership.
- Home Inspection and Contingency Period: During this period, it's essential to schedule a professional home inspection. The inspector will thoroughly examine the property's condition and provide you with a detailed report of any deficiencies or potential problems. Based on the inspection report, you may negotiate repairs or credits with the seller, or potentially exercise your right to walk away from the transaction if significant issues are uncovered. This period is typically outlined in the purchase contract as the home inspection contingency, allowing you a specific timeframe to complete the inspection and address any concerns.
- Purchase and Sale Agreement and Down Payment: Once your attorney has reviewed the contract and any negotiations are resolved, a Purchase and Sale Agreement (P&S) will be drafted. This document outlines the final terms of the sale and includes specific details like the purchase price, closing date, and contingencies. You'll need to sign the P&S and submit the agreed-upon down payment (typically a percentage of the purchase price) to demonstrate your commitment to the transaction.
- Mortgage Approval and Contingency Periods: As your lender processes your loan application, they will conduct an appraisal to determine the property's value. If the appraisal meets or exceeds the agreed-upon purchase price, and all other loan requirements are satisfied, your mortgage will receive final approval. This approval usually comes with a mortgage commitment letter. During this period, it's crucial to fulfill any remaining conditions and contingencies outlined in the purchase contract, such as obtaining homeowner's insurance or clearing any title issues.
- Closing Preparations: As the closing date approaches, your attorney and lender will coordinate to prepare the necessary documents and conduct a title search to ensure clear ownership of the property. They will also calculate the final closing costs, including any prorated taxes and fees. You'll receive a Closing Disclosure document, detailing all the financial aspects of the transaction, including the amount due at closing.
- The Closing: Finally, the big day arrives! The closing is the formal meeting where you, the seller, your attorneys, and the lender's representative gather to complete the sale. At the closing, you'll review and sign numerous documents, including the mortgage note, deed, and other closing statements. You'll also pay any remaining closing costs, and the seller will transfer ownership to you. Once all the paperwork is signed and funds are disbursed, you'll receive the keys to your new home!
Remember, the timeline and specific details may vary depending on your circumstances, but this general overview should give you a good sense of what to expect from offer acceptance to closing. Stay in close communication with your real estate agent, attorney, and lender throughout the process to ensure a smooth and successful home buying experience.