When your offer is accepted, you may want to celebrate — and you should, with the understanding that this is the first step of the often lengthy and stressful closing process. Once your offer is accepted, several important steps must be completed before the home is officially yours. In addition to staying cautiously optimistic, below are the steps you need to take once your offer is completed.
Secure your mortgage loan
Unless you’ve made an all-cash offer, you’ll need to secure your mortgage loan. Ideally, you have already been pre-approved, so you’ll need to work with your mortgage lender to provide the required financial information within the specified timelines.
Wait for the appraisal
The mortgage lending process requires a house appraisal completed by a professional appraiser, who the lending company selects. This appraisal reports the home’s appraised value, considering the square footage, bedrooms and bathrooms, recent renovations, lot size, and the recently sold home comparables. If the appraised value is less than the price, you can either make a larger down payment, negotiate a lower price with the seller, or walk away.
Schedule the home inspection
The home inspection is a crucial part of the homebuying process. An inspection evaluates a property from top to bottom. It assesses the condition of the physical structure, factoring in the foundation, roof and everything in between. An inspector should discover any areas of concern and identify the necessary repairs, so you can be aware of any potential issues that can impact the value or sale of the home.
Have closing funds available
Once you make your offer, ensuring you have access to your closing funds is essential. If these funds are in an investment account, it’s critical to access this as soon as possible to ensure you have it in time for the closing.
Secure homeowner’s insurance
Often, you’ll be required to secure homeowner’s insurance before you close on the house. And you’ll need to have proof of insurance before your mortgage is approved. Comparing different insurance companies is the best way to be sure you’re getting the best rate.
Schedule the final walk-through
The final walk-through is an essential step of the closing process. The final walk-through of the new home should be scheduled as close to your closing day as possible. Often you can do it within 48 hours of closing. The final walk-through is an opportunity for the buyers to ensure that the house is in the same condition as it was at the time of the initial offer and to identify any last-minute issues. Since several months may pass between the offer and the closing date, problems may surface, so it’s vital to ensure they’re resolved before the closing day.
Attend the closing
Closing day is the big day when you officially gain home ownership. The closing typically takes place at the title company and you will sign the mortgage documents, your ID, and a check to pay the closing costs. If you have any questions about what to bring to the closing, it’s essential to ask your real estate agent.
