What happens after you put in an offer for a house?
After making an offer, the seller will review it and either accept it as is, make a counteroffer, or reject the offer.
If the offer is accepted hang on here we go!!!
Having your offer accepted on a new home purchase is one of the most significant and emotional financial transactions of your life. Not only are you committing to the responsibility of paying a monthly mortgage, you’re also choosing the home and the community you might be living in for many years. It’s a big moment.
You’ll feel excited, relieved and, likely, a little bit nervous, too. After all, you’ve gone from a home search filled with possibilities to a settled decision. What has likely been a primary obsession for weeks, if not months — the up-and-down journey to buy a house — is now over. But there is still work to do, with hurdles to clear before the purchase is legally binding and the house is truly yours. As we’ll see, these steps are necessary to protect you, the seller, and the lending institution you are partnering with on a mortgage.
11 Things To Do Once The Seller Accepts Your Offer
The home buying process doesn’t end once the seller accepts your offer. You’ll have to complete steps to assure the seller that you’re equipped with the proper financing to close the sale, and the seller will have to open the house up for appraisal and inspection to assure all parties that the house is sound. Once all of these measures are accomplished, you’ll sign the necessary paperwork at closing.
- **Deposit Earnest Money**
- Earnest money is a payment placed with a third party (like a law firm, real estate broker, or title company), held in escrow until closing, and then used towards your down payment or closing costs.
- Typically a small fraction of the sale price (usually 1% to 3%), it can be paid by check, money order, or wire transfer.
- Alongside a preapproval letter from your lender, earnest money assures the seller of your seriousness and financial capability.
- **Secure A Home Loan**
- If your finances allow for the purchase, obtaining a home loan should be feasible.
- Ensure your lender has sufficient time to review your application documents by getting preapproved before starting your house hunt.
- After your offer is accepted, provide additional documentation to your lender, including bank statements, pay stubs, and credit card statements.
- **Have The Home Inspected**
- Following an accepted offer, schedule a professional home inspection, often a condition in the purchase agreement.
- You can select your own home inspector, but real estate agents usually have connections with licensed inspectors.
- Opt for an inspector solely focused on inspections for unbiased evaluations.
- The buyer covers the inspection cost, averaging around $340 in the U.S.
- **Have The Home Appraised**
- A home appraisal is necessary post-offer acceptance and before closing.
- Ordered by your lender, the appraiser assesses the property’s fair market value.
- If the appraised value is lower than the sale price, negotiations may be required to proceed.
- **Review The Title**
- The real estate title establishes property ownership and outlines past owners and any liens.
- Employ a title company to examine the title for potential claims from previous entities.
- **Transfer The Utilities**
- Plan ahead for utility services in your new home to avoid disruptions.
- Contact utility providers in your new area early, ensuring services like electricity, water, and internet are active before moving in.
- Schedule installations well in advance, especially for essential services like heat and water, to have everything ready by moving day.