What to Expect After an Offer is Accepted: Next Steps for Homebuyers

What to Expect After an Offer is Accepted: Next Steps for Homebuyers

You’ve found your dream home, submitted an offer, and the seller has accepted it—congratulations! But the journey to homeownership isn’t over yet. The period between offer acceptance and closing is critical, involving inspections, appraisals, and final preparations. Here’s what to expect and how to navigate these steps confidently.

1. Review and Sign the Purchase Agreement

Once your offer is accepted, the next step is finalizing the purchase agreement. This legally binding contract outlines the terms of the sale, including:

• Purchase price
• Contingencies (e.g., inspection, appraisal, financing)
• Closing date

What to Do Next:

• Carefully review the agreement with your real estate agent and attorney (if applicable).
• Confirm that all agreed-upon terms, such as repairs or inclusions, are clearly stated.
• Sign the agreement to officially move forward with the purchase.

2. Submit Your Earnest Money Deposit

Earnest money shows the seller you’re serious about purchasing the home. This deposit is held in escrow and later applied to your closing costs or down payment.

What to Know:

• Typical earnest money amounts range from 1% to 3% of the purchase price.
• Ensure the funds are submitted to the designated escrow account by the agreed-upon deadline.

3. Schedule a Home Inspection

A home inspection is a crucial step to uncover any potential issues with the property. A professional inspector evaluates the home’s condition, including the roof, plumbing, electrical systems, and foundation.

What to Do Next:

• Hire a licensed home inspector (your agent can recommend trusted professionals).
• Attend the inspection to ask questions and gain firsthand insights.
• Review the inspection report for any red flags or repairs needed.

Possible Outcomes:

• Move Forward as Is: If the inspection reveals no major issues, proceed to the next step.
• Negotiate Repairs or Credits: Request the seller address significant problems or provide a credit to cover repair costs.
• Walk Away: If the inspection contingency is in place and major issues arise, you can cancel the contract without penalty.

4. Arrange for the Appraisal

If you’re financing the purchase with a mortgage, your lender will require an appraisal to confirm the home’s value aligns with the loan amount.

What to Expect:

• An appraiser, hired by the lender, will assess the home’s value based on its condition, location, and comparable sales.
• The appraisal ensures the lender isn’t loaning more than the property is worth.

Possible Outcomes:

• Appraisal Matches or Exceeds Offer: Great news—proceed with financing.
• Appraisal Comes in Low: You may need to renegotiate the purchase price, pay the difference in cash, or appeal the appraisal with additional data.

5. Secure Your Financing

If you’ve been pre-approved for a mortgage, now is the time to finalize the loan. This involves submitting any outstanding documents to your lender and locking in your interest rate.

What to Do Next:

• Provide updated financial information if requested, such as pay stubs or bank statements.
• Avoid making large purchases or opening new credit accounts, which can affect your loan approval.
• Work closely with your lender to ensure all conditions are met before closing.

6. Purchase Homeowners Insurance

Homeowners insurance is typically required by lenders to protect your investment and theirs. It covers damages to your property, liability for injuries, and additional risks.

What to Do Next:

• Shop for insurance providers and compare coverage options and rates.
• Provide proof of insurance to your lender before closing.

7. Conduct a Title Search and Secure Title Insurance

A title search ensures the property is free of legal issues, such as liens or disputes, that could affect your ownership rights. Title insurance protects you against future claims to the property.

What to Expect:

• Your attorney or title company will handle the title search.
• If issues arise, they must be resolved before closing.

8. Review the Closing Disclosure

Three days before closing, your lender will provide a Closing Disclosure (CD). This document outlines the final loan terms, closing costs, and the total amount you’ll need to bring to closing.

What to Do Next:

• Review the CD carefully to ensure it matches your Loan Estimate and includes no unexpected fees.
• Contact your lender or agent if you have questions or notice discrepancies.

9. Perform the Final Walk-Through

A day or two before closing, you’ll have the opportunity to walk through the property to confirm its condition matches your expectations.

What to Check:

• Repairs agreed upon during negotiations have been completed.
• Appliances, fixtures, and systems are functioning properly.
• The property is clean and free of the seller’s belongings.

10. Closing Day: Finalize the Sale

On closing day, you’ll sign the final paperwork, pay any remaining costs, and receive the keys to your new home.

What to Bring to Closing:

• A government-issued photo ID
• Proof of homeowners insurance
• Funds for closing costs (via certified check or wire transfer)
• Your copy of the Closing Disclosure

What Happens at Closing:

• You’ll sign the mortgage agreement, deed, and other required documents.
• Funds will be transferred to the seller, and ownership of the property will be officially transferred to you.

Tips for a Smooth Process After Offer Acceptance

1. Stay Organized: Keep track of deadlines, documents, and communications with your agent and lender.
2. Communicate Openly: Don’t hesitate to ask questions or request updates from your agent or lender.
3. Avoid Major Financial Changes: Any significant changes to your financial profile can delay or jeopardize your loan approval.

Final Thoughts: The Journey to Closing

The steps after an offer is accepted may seem overwhelming, but with the right preparation and guidance, you’ll navigate them smoothly. By staying proactive, organized, and informed, you’ll be ready to close on your dream home in no time.

If you’re buying a home in Morgantown, West Virginia, and want expert advice through every step of the process, I’m here to help. Contact me today to make your home-buying journey stress-free and successful.