What happens after offer on house is accepted?
Once the offer on a house is accepted, the process of purchasing a new home officially begins. This is an exciting time, but it’s also crucial to understand the steps that follow to ensure a smooth and successful transaction. In this article, we’ll outline the key stages that occur after the offer on a house is accepted.
1. Contract Review and Signing: After the offer is accepted, the buyer and seller will receive a copy of the contract. It’s essential to review the contract carefully, as it outlines the terms and conditions of the sale. Both parties will then sign the contract, making it legally binding.
2. Home Inspection: The buyer typically has a set period, usually around 10-14 days, to conduct a home inspection. This inspection helps identify any potential issues with the property that may affect the buyer’s decision to proceed with the purchase. If the inspection reveals significant problems, the buyer may negotiate with the seller to address them or even cancel the contract.
3. Appraisal: The lender will order an appraisal to determine the home’s current market value. This appraisal is crucial for the lender to ensure that the loan amount is appropriate. If the appraisal comes in lower than the purchase price, the buyer may need to negotiate with the seller or come up with additional funds.
4. Loan Approval: The buyer must obtain loan approval from the lender. This process involves verifying the buyer’s financial qualifications, including credit score, income, and debt-to-income ratio. Once approved, the lender will provide a loan commitment letter, which outlines the terms of the mortgage.
5. Closing Costs: The buyer is responsible for paying closing costs, which can include lender fees, title insurance, and escrow fees. These costs vary depending on the location and the specifics of the transaction. The buyer will receive a closing cost estimate from the lender before the closing date.
6. Final Walkthrough: Before the closing, the buyer will have a final walkthrough of the property to ensure that it’s in the same condition as when the offer was accepted. This is also an opportunity to confirm that any agreed-upon repairs have been completed.
7. Closing: The closing is the final step in the home buying process. Both parties will meet at a title company or attorney’s office to sign all necessary documents. The buyer will pay the remaining balance of the purchase price, and the seller will transfer ownership of the property. Once the documents are signed and recorded, the buyer becomes the new owner.
Understanding what happens after the offer on a house is accepted can help alleviate stress and ensure a successful home purchase. By being prepared and informed, buyers can navigate the process with confidence and look forward to the joy of homeownership.
