There’s a lot to consider when you’re preparing for an offer on a new home. Let Cliffco Mortgage Bankers guide you through the process.
1. Accepting an offer
Earnest money is your proof as a buyer that you “earnestly” want to purchase their home. Earnest money can be collected before or after the offer is submitted. Make sure that your earnest money is delivered on time and in the proper payment form. This information is usually documented in your sales contract.
2. Executed Sales Contract
Make sure you know how long your inspection period is, and complete your inspections in a timely manner. A standard home inspector is the most common, Other inspections for: radon, pest, septic, structural, HVAC, and mold inspections may also be relevant to your buying situation.
3. Communicate with your mortgage lender
As soon as you have an executed sales contract, you will need to communicate with your mortgage lender so that they will start the mortgage process. Make sure that you get the requested documentation to them ASAP to limit any problems with their timeline. If you or your lender does not complete the loan process in a timely manner, it can cause you to be in breach of contract by not closing on time.
4. Title search
A Title Company will issue a title commitment that reviews the title history of the property and discloses any liens against the property that need to be resolved before closing. Be sure to review your title commitment and ask an attorney for advice if you see anything in it that looks concerning.
5. Home Appraisal
Once Inspection is cleared, let your lender know.
Lender will order a home appraisal to verify that the value of the home your purchasing is worth the loan amount that you are asking for.
It’s likely that you will be paying for the appraisal, so it’s best to wait until after you have completed the inspection process.
6. Home Owner’s Insurance Policy
Your lender will require you to have a Home Owner’s Insurance Policy on the property that you are purchasing. You will want to shop around and choose the home owners insurance provider and policy that works best for you. Once you have the policy in place, let you lender know.
Inquire about switching all utilities into your name.
Your sales contract will have an agreed upon closing date. Your lender will contact all parties involved in the closing and organize a mutually convenient closing.
10. Walk through
It is wise to do a final walkthrough before the closing. The purpose is to verify that any repairs have been completed, that all of the seller’s personal belongings have been moved out, and/or to make sure that the home is ready to move into.
One the day of closing, you will need to have your driver’s license (or other approved photo ID) and certified funds (cashier’s check or wire transfer) for any monetary amount required from you at closing.
Make sure that you stay on top of your transaction to identify any potential issues before they arise. If you have a good mortgage lender and/or REALTOR®, they will catch these issues immediately. They will keep you in the loop through each step and protect your interests. A good REALTOR® is your best resource to make sure that every step above is met in a timely manner with no added drama.
Buying a home takes time and energy, but it’s extremely rewarding. After you sign the papers at closing and get your keys, all of your hard work will have paid off, and you will feel a wave of excitement as you move on to enjoy your new home!