What are the steps in the home buying process? Part 2
Published | Written by Sarah McCormick
Last week we talked about the steps to homeownership before your offer is accepted. This week, we’ll go through the steps of what it looks like to go from getting your offer accepted to closing and moving day! No process is “one size-fits-all,” but here are the next general steps. Ready? Here goes!
Your offer was accepted. Congrats! Next up, get your earnest money deposit to escrow. This is a predetermined amount that you agreed to on your offer (which now becomes the contract once both parties sign). The earnest money deposit is your “good faith” gesture. This deposit indicates to the seller your intentions of staying in contract and it goes towards your down payment. If you were to back out of the contract, this is insurance for the seller and the seller typically keeps the deposit.
Schedule an inspection. If you did not waive this contingency in your offer, you’ll want a professional inspector to come to your soon to be new home ASAP. If you don’t know any inspectors, your agent should be able to recommend a trusted professional to do the job. The inspector will walk through the house with you and let you know of any major and minor concerns with the house. You and your agent then discuss what you want the seller to fix before closing, or if you want to ask for help with closing costs to help offset doing the repairs yourself.
Appraisal time. If you are getting a loan, your lender will order an appraisal of the house to determine if the purchase price is at value. Nothing needs to happen on your part here unless the appraisal comes back lower than the purchase price. Your agent will strategically help you navigate next steps.
Make sure down payment funds are ready to go.
Sign all of the closing documents! The escrow company will typically reach out to you to schedule your signing a few days or even a week before closing day. Practice your Hancock now, because you’ll be writing it a lot!
Final walkthrough. Your agent will arrange to walk through the house with you and make sure the seller kept their word to fix any repairs. This is also a great time to measure for furniture and window treatments!
Closing day! Yay! Once your agent gets the final word that the city has recorded the sale, the house or condo is officially yours. Your agent will arrange to get you the keys so you can move in.
Have questions? Reach out to Sarah Fester or leave a comment below!