Good news! Your offer has just been accepted and you’re on your way to buying your new home! This is a cause for celebration, but not for too long—the process has only just begun. Buying a house isn’t nearly as simple as popping down to the grocery store, grabbing what you need, and paying for it. Banks are involved, home insurance needs to be obtained, titles need to be cleared, and so much more. And with so many first-time buyers on the market, there are plenty of people who don’t exactly know what comes next.
On this blog, we’ll attempt to shed some light on what happens after you get that amazing phone call saying your offer has been accepted. We’ll discuss the steps that happen between that point and when you officially take ownership of your new home, including some of the obstacles you’ll face along the way.
Make an Initial Deposit
You’ll have up to three business days to transfer an initial deposit on the new home in order to show that you’re serious about making the purchase. This deposit is usually about three percent of the agreed purchase price, and this deposit goes toward your down payment on the home. But you’ll need to have the cash available. Your agent will most likely communicate with you how this is to be done, but don’t put it off; if you do, you could lose out on your offer and the home could go back on the market.
Get a Home Inspection
The first thing you’ll need to do is have your home inspected by a licensed home inspector. You will have to pay for this, and you will want to pay for it, because you’ll want as clear, accurate, and honest of a picture of your home’s condition as possible. An inspection can be expensive—it’s not uncommon for their cost to exceed $500 or more, but if it helps you uncover a potentially serious problem that could wind up costing you thousands upon thousands in the future, they’re worth every penny. Likewise, your bank or lender may refuse to finance your purchase without an inspection being completed.
Get an Appraisal
Your lender will choose an appraiser who will go to the home, evaluate it, and give their educated opinion on the true value of a property. This is a huge step—if the property isn’t worth the agreed-upon sale price, then the lender won’t finance the entire purchase and you’ll be stuck with the difference. You may be able to negotiate with the seller to drop the sale price to accommodate for the low appraisal, but if they refuse you may have to walk away.
Get Your Loan Approved
The loan approval deadline is an important date for both the buyer and the seller. If you haven’t received pre-approved financing, you’ll have up until this deadline to get the financial backing you need to make your purchase. You want to know if you have the loan available to you, and the seller will want to know you can afford the purchase. If the lender doesn’t approve your loan, you can cancel your purchase as long as it’s done before this deadline.
Finally, the day will come when it’s time to sign the final transfer papers. You’ll do a final walkthrough of the property to make sure that the condition hasn’t changed since your last visit. If you approve of the condition, you’ll sign all of the loan and closing documents (there will be many of them), and then transfer the rest of your down payment into the escrow account. Finally, the county clerk will date-stamp the deed to your property, officially making you the owner of your property.
You’ll receive the keys to your home, and that’s it. It’s time to celebrate; you’ve officially completed the purchase of your home!
To learn more about buying your first home, or if you need assistance getting into the home of your dreams, make sure you have outstanding representation from a skilled Valencia realtor. Call Dippy Chinna by dialing 661.441.3304 to request more information!