They Have Accepted Your Offer! Now What? - Episode 6

They Have Accepted Your Offer! Now What?

Your offer on your new home has been accepted. These are the things you need to do between now and the closing date.

 Within the First Several Days of Acceptance 

• Contact your mortgage person to let them know your offer has been accepted. The mortgage person will begin the financial process and order an appraisal for your new home

 

• Order your home inspection. As we discussed in the previous episode, This will no doubt be the largest purchase you make. Spending a couple of hundred dollars to have a qualified person thoroughly inspect your future home may prevent thousands of dollars of unexpected repairs later on. Contact a licensed home inspector of your choice (if you are working with a "buyers agent", then he/she may recommended one). The home inspector will set an appointment that is convenient for you. The inspection must take place during your inspection period, usually 10 days from acceptance of your offer

 

• Confirm the earnest money deposit. The earnest money deposit on your new home should be deposited within 3 days of final acceptance. With the inspection process it can be 10 days from the date of your offer. This is normally 5% of the purchase price, but could be significantly less depending on your financing and your available funds. This must be made by bank check, certified check or money order. If you need to transfer funds from a retirement or money market account, or borrowing money from a relative, do it as soon as possible to allow time for the check to clear.

 

• Have the purchase and sale agreement reviewed by your attorney. Although not required, having an attorney familiar with real estate law will save you peace of mind and possibly money should any legal issues come up. An attorney will help to make sure you are financially protected should anything go wrong during the home buying process.

 

• Sign the Purchase and Sale Agreement. The is the contract that contains all the details of the real estate purchase. Occasionally, this may take place beyond the 10 day period if there are any concerns that are being negotiated between the buyer and seller. Get copies!

 

• Emotions and Buyer’s Remorse. It’s natural and how you can cope.

 

• Inform your landlord you are purchasing a home if you are renting. Most landlords require at least 30 days notice that you are moving or you may forfeit any deposits you have on your apartment. My recommendation is that you do it in writing and you send it certified. Minnesota laws require 30 day notices. Which goes from calendar to calendar.

 

• Do not make large purchases or acquire consumer debt. Most people jeopardize their closing because they buy furniture, cars, or appliances prior to close. Many times they do this using credit cards or applying for a loan. This may change your credit rating and debt to income ratio. You don’t want to have to come up with money at closing when you can just wait till after. Hold off on those purchases. Within 3 Weeks of Close Date

 

• Contact your insurance person to arrange for coverage for your new home. Most lenders require you to pay one year's insurance premium up front. Your insurance broker can let you know how much this will be, and will provide a binder for you to bring to the closing.

 

• Stay in contact with your mortgage person. You must obtain a mortgage commitment letter before your financing period ends (usually about