Here are the five steps you have to take after getting under contract.
So your offer got accepted, and you’re finally under contract. Most of the hard work is over, but there are still things to do before you reach the closing table—it will take a team of people to get you there. You’ll need a title company, an inspector, and an appraiser. I’ll break down what happens from this point to closing:
1. Take your earnest money to your title company. Your earnest money is typically 1% of the purchase price, but if you don’t have that amount, you can also pay only half a point. For a $200,000 home, you’ll likely need to pay $1,000 in earnest money. You then make a check payable or use a form of online payment to pay your title company.
2. Hire a home inspector to inspect the house. I can recommend a reliable ASHI-certified inspector to find any issues with the house. We typically have seven to 10 days to do the home inspection, depending on what was agreed upon on the offer. The faster we get it done, the quicker we can move on to the next stage.
“You need a team of experts to get you to closing.”
3. Your lender will send an appraiser to appraise the home. The appraiser will determine whether the value you are paying for the home is substantiated by other sales in the area. Most appraisers will look at three to five houses in that location and make sure you’re not overpaying. They send the report to the lender to be used for their final underwriting piece. If there’s nothing wrong with the home, we will get a confirmation that everything is fine.
4. You will take a final walk-through of the home. As part of the last steps, you will do a final walk-through of the home, which is typically four to five days before closing. The goal is to ensure that all the necessary repairs were done with great workmanship.
5. You schedule a closing date with the title company. Once you’re satisfied with the condition of the home during the final walk-through, you can then schedule a time to close with the title company. You’ll need certified checks for any proceeds that you owe, and don’t forget to bring your driver’s license. After signing the paperwork, you’ll have to wait until the funding is settled, meaning the title company has to give the seller the money before you can access the home. Once that’s settled, you’ll have the keys to your new home and can move in.
You need a team of experts to get you to closing. If you have more questions about this process or have any real estate questions, call or email me. I’m always happy to help!