Your Offer is Accepted! Now What?
Congratulations! Your offer has been accepted and you are Mutually Accepted! The clock to closing starts now and a crazy amount of events must be executed, on the dot, until closing. Technically it’s your responsibility to complete these tasks but don’t worry, I manage the process and keep you updated every step of the way!
MUTUAL ACCEPTANCE – Immediate Tasks
Upon Mutual Acceptance, I will send a copy of your Purchase and Sale agreement to your Lender, the Title Officer and the Escrow Officer.
Your Earnest Money check will be deposited, I’ll make arrangements with the Escrow Officer to pick this up from you.
Apply for Financing: Contact your Lender to formally apply for the loan, you’re probably already fully underwritten but now we have a Purchase and Sale Agreement you will need to email your lender to start the application process. You’ll also want to ask them about “locking” in your loan interest rate. Please note: DO NOT MAKE ANY financial changes such as paying off debt, buying a car, changing a job, etc. without speaking to your Lender first, these kind of changes could jeopardize your loan.
Home Inspection: Let’s get this scheduled and on the calendar.
Homeowner’s Insurance Review: Call your insurance company to ask them to prepare a Homeowner’s Insurance Binder for the new property; make sure you have the property information available because they’ll want to know the year built, square footage, type of electrical & heat, etc. Let me know if you need an insurance agent recommendation.
Neighborhood & House Research: This is for your own peace of mind. You may want to research the neighborhood some more. You can knock on the neighbor’s doors and ask them about the area. ** Remember that the seller is not required to provide information regarding crimes that occurred in the house such as murder or rape, ongoing criminal or gang activity in the neighborhood, registered sex offenders in the neighborhood, future development in the area or political or religious activities in the area.
Home Inspection, Research, Appraisal & Loan
The Home Inspection: this takes a few hours based on the size of the property. It’s great if you attend the inspection, I’ll be there and the home inspector. This costs about $400-$500.
Sewer Scope: I recommend scoping the sewer in addition to the home inspection. I can coordinate this to be done at the same time as the home inspection and it costs about $200.
After the Home Inspection: we’ll work together to decide what our inspection response will say. The options are:
Inspection is approved.
Inspection is disapproved, the transaction is terminated and earnest money will be returned.
An additional inspection is required.
Modifications/repairs or renegotiation of purchase price/closing costs is requested. In this case, we negotiate with the seller to come to an agreement.
Resale Certificate Review: For condo buildings, upon receiving the resale certificate, you have a period of time to review the document and respond or it is automatically approved.
10 Day Review: You have 10 days after mutual acceptance to verify that all the information provided by the seller and/or listing agent is accurate.
Disclosure from Seller: The Seller must provide a disclosure of the condition of the property, also known as the “Seller Disclosure” this is a 6 a page document.
Appraisal: After the home inspection has been approved, your Lender will order an appraisal to verify the value of your new home. I will personally meet with the appraiser to discuss the comparable sales and point out the home and neighborhood features so they have all of the information so we don’t have any surprises.
Obtain Financing: The loan process should be well under way prior to the financing contingency period ending. At this point, the seller may ask you to waive your financing.
Escrow & Title
Title Report Review: Review the title report and title insurance policy to ensure there are no issues.
Fill out and return the paperwork the Escrow Company will send to you, this one is super important so please do it right away.
Prepare any additional down payment funds or closing costs to be available at your signing appointment such as cashing out stocks, bonds, or other investments. Some investment plans can take a few weeks to process so be prepared ahead of time. You must bring a Cashier’s Check to your signing or wire the funds; no personal checks will be accepted.
Make sure to let your Escrow Officer know in advance if you will be out of town near your closing so that they can schedule accordingly.
Open Utilities & Update the Post Office: I’ll provide a “Moving Checklist” to help with contact information, do’s and don’ts plus helpful moving resources. Be sure to start utility services for the day you close.
It’s pretty rare for the property to have oil heat, but if it does you can register for free insurance: HERE.
7 days prior to closing contact your lender to confirm your loan program has been finalized and all paperwork has been completed.
2-3 days prior to closing: We can walk through the property to verify the condition and take any last minute measurements you might need.
2-3 days prior to closing: If the property has a homeowner’s association, contact them to let them know what date you are moving in.
2-4 business days prior to closing: Escrow receives your loan documents from the Lender and prepares them for you to sign. They will immediately contact you to schedule signing appointments for you and the Sellers.
Bring closing funds to signing: Escrow will inform you of the amount due prior to your appointment. Bring a Cashier’s Check to your signing or ask for Wire Instructions.
Closing Day: The funds are transferred before 1pm and then Escrow takes your Deed to be recorded and once those recording numbers come back it’s official! (Please note that there is occasionally a slight delay of the closing date due to uncontrollable variables.)
Then I deliver the keys and a bottle of champagne, welcome home!
What is Escrow? Escrow is a neutral third party that coordinates the paperwork, which includes requesting a copy of the preliminary title insurance policy; collecting information from buyers, sellers and agents as needed; ordering the seller’s loan payoff information; clearing outstanding issues (home loans, liens, vesting, etc.); and reviewing the file for any additional information necessary to close the transaction.
You will sign the final documents at the escrow company’s office.
What happens to my earnest money check? Upon mutual acceptance, it is deposited. The funds will go towards your down payment and/or closing costs.
When do I get the keys to my new home? On the closing date, I will give you the keys and you can legally take possession at 9pm. Sometimes the seller will agree to allow possession earlier in the day, after the deed is recorded at the courthouse in the late afternoon.