Many people have no clue how the home buying process works from start to finish. My job is to put YOU in the best position possible when it comes to purchasing a new home. I wrote a quick series of articles breaking down the home buying process. I started with STEP 1: Getting Prepared, STEP 2: Go Shopping and Submitting and Offer, and now we move on to the last step...
STEP 3…Congratulations, you have an accepted offer!
Now that your offer has been accepted, what do you do first??
1) Schedule the home inspection with an engineer.
New York is a "buyer beware" state, so do your due diligence and make sure you are buying a home free of any major structural issues. The engineer will inspect the property to let you know if there is anything to be concerned about.
2) Drafting & signing the contract.
The seller's attorney will draft the contract of sale and both the seller and buyer's attorneys will negotiate the terms. You, the buyer will sign the contract and give a deposit, followed by the seller who will countersign.
3) Apply for your mortgage.
Find a bank with the best rates and apply. The bank will review your financial information, schedule an appraisal, check that the house has a clear title, etc.. After everything been successfully done, the bank will give you a commitment letter, approving your loan and locking in a rate. Schedule your closing ASAP before the mortgage commitment expires. Be sure to discuss closing costs with your mortgage banker so there are no expensive surprises in the end. At the closing, the bank will require proof of home owners insurance, so be sure to purchase that as well.
4) Schedule your final walkthrough of the property within 24 hours of closing.
You want to make sure that everything is still in working order in the house between the time you did your inspection and closing. Do a final walk through with your real estate agent and be sure to check all the appliances, run all the water, check the heating and air conditioning systems etc. If you come across any issues, discuss them with your attorney and they should be worked out prior to closing.
5) Schedule and attend the closing.
Allow enough time for your closing because there will be lots of legal documents to sign. A few hours usually should do. Your attorney will explain all the documents as you sign them. You will bring the remaining down payment and the bank will provide the rest of the funds where they will be exchanged with the seller. The title will be transfered to you, making you the new home owner!
CONGRATULATIONS!
If you have any questions or want more details on any of the above information, don't hesitate to email me at marchmich@gmail.com. Call me, I LOVE talking houses!
