Home Qualified's Ralph DiBugnara and real estate attorney Ashley Molson walk buyers through what happens once an offer on a property is accepted.
Buyers who have an offer accepted on their first home are entering into a thrilling time. But, what comes between an offer being accepted and a sale closing?Home Qualified’s Ralph DiBugnara talks shop with real estate attorney Ashley Molson to determine what to expect when your offer has been accepted.
- Earnest Money Deposit
Buyers are expected to put down a deposit on their contract. A sign of good faith, this amount consequently allows for additional time to seek financing. Held jointly in a escrow account, the amount ranges from 1,000 to 3% of the purchase price of the property.
- Mortgage Negotiations
Pre-approved? Buyers should contact their mortgage bank to disclose loan terms and collect remaining documents. Furthermore, buyers are urged to order a home appraisal.
- Property Inspection
General inspectors are drafted to inspect your future home from top to bottom. Inspectors ensure all major systems are functioning and identify any issues with the home.
- Mortgage Commitment
Lenders will issue a commitment to lend that will be forwarded to the sellers. Lenders issue this document once they have received a home appraisal, property inspection and proof of homeowner’s insurance.
- Title Commitment
Handled by a title company, this title report considers property history. Since the title company will review property history, they will address any issues that need to be resolved prior to closing.
- Clear to Close
The mortgage company that represents the buyer will clear and approve the mortgage loan and send relevant documents. Respective attorneys will also receive necessary paperwork.
Buyers will do a final walk through on the day of closing. Finally, all documents will be reviewed and signed. Typically, a closing takes about an hour.
In conclusion, if you have any further questions about how to get yourself from prospective buyer to closing day owner, see our related videos and contact Home Qualified today.