Steps After Your Offer on a House is Accepted

Once your offer on a house has been accepted by the seller, there are several important steps that typically follow. These steps are crucial in ensuring a smooth transition from the offer stage to the closing stage of the home buying process. In this article, we will outline the typical steps that occur after your offer has been executed.

1. Option Fee and Earnest Money Deposit

After your offer is accepted, you will need to provide checks for option fee and earnest money deposit to the seller.

An option fee is a payment made by a buyer to a seller during the option period in a real estate transaction. The option period is a negotiated period of time (usually a few days) during which the buyer has the exclusive right to terminate the contract without penalty.

Earnest money on the other side is a deposit that serves as a show of good faith and demonstrates your commitment to purchasing the property. The amount of the earnest money deposit is typically a percentage of the purchase price and is held in an escrow account until the closing.

2. Home Inspection

Once the option fee and earnest money are submitted, it is common for the buyer to schedule a home inspection as soon as possible. A home inspection is an important step in the home buying process as it allows you to identify any potential issues or repairs that may need to be addressed before closing. The inspection report will provide you with valuable information about the condition of the property and can help you make an informed decision about moving forward with the purchase.

3. Appraisal

Following the home inspection, the next step is typically the appraisal. The appraisal is conducted by a professional appraiser who assesses the value of the property. The lender requires an appraisal to ensure that the property is worth the amount of the loan. If the appraisal comes in lower than the agreed-upon purchase price, it may affect the financing and require renegotiation between the buyer and seller.

4. Financing

While the appraisal is taking place, it is important to continue working on securing your financing. This includes submitting all necessary documentation to your lender, such as income verification, bank statements, and any other requested information. The lender will review your financial information to determine if you qualify for the loan. It is essential to stay in close communication with your lender throughout this process to ensure a timely closing.

5. Title Search and Insurance

A title search is conducted to verify the legal ownership of the property and to identify any potential liens or encumbrances. This step is crucial in ensuring that there are no legal issues that could affect your ownership of the property. Additionally, it is important to obtain title insurance to protect yourself against any unforeseen title defects or claims that may arise in the future.

6. Finalize Closing Details

As the closing date approaches, it is important to finalize all the necessary details. This includes coordinating with your real estate agent, lender, and attorney to ensure that all required documents are prepared and ready for signing. It is also important to review the closing disclosure, which outlines the final costs associated with the purchase.

7. Final Walk-Through

Prior to closing, it is customary for the buyer to conduct a final walk-through of the property. This allows you to ensure that the property is in the agreed-upon condition and that any repairs or agreed-upon changes have been made. If any issues are identified during the walk-through, they can be addressed before the closing takes place.

8. Closing

The final step in the home buying process is the closing. This is where all the necessary documents are signed, and the funds are transferred to complete the purchase. The closing is typically conducted at a title company or attorney's office and involves the buyer, seller, real estate agents, and any other necessary parties. Once the closing is complete, you will receive the keys to your new home and officially become the owner.

In conclusion, after your offer on a house is accepted, there are several important steps that typically follow. However, you are not alone throughout this prolonged process. Your Realtor, LH Team is your guy to ask for and your assistant to answer your concerns related your purchase.