What happens when I put an offer on a home?

Posted by Jenny Smith on Wednesday, June 15, 2022 at 4:32 PM By Jenny Smith / June 15, 2022 Comment

What happens when I put an offer on a home?

Okay, Jenny, our offer got accepted! Now what?" I get asked this question a lot so I wanted to break it down for you .I know it sounds like a lot, but remember that I will be walking with you step-by-step through the whole process! Call me today and we'll chat about how I can help you begin your home buying journey!

Part one: MAKING THE OFFER

We will need a pre-approval letter from a mortgage lender (or a proof-of-funds if buying in cash) to send with the offer.
We will discuss how much to offer as the purchase price and other contingency items based on your situation.
If your offer is accepted, you'll need to put down earnest money within few days. This is typically 1-2% of the purchase price and goes toward your closing costs or down payment at closing.

Part two: OFFER IS ACCEPTED

Yay! As soon as your offer is accepted, we will enter due diligence.. THis is your chance to have inspections done, get insurance qoutes, and begin the mortgage loan process.
You'll also need to pay the earnest money via themethod stated on the contract ASAP. If you terminate the contract during the inspection period, you will receive your earnest money back.

Part three: INSPECTION RESULTS

Once the home inspection report comes in, we may need to negotiate any repairs with your seller.
Keep in mind that your lender may require certain repairs depending on you loan type.

Part four: OBTAIN FINANCING

If you're getting a mortgage, your loan application needs to be started promptly after going binding on your house. During your loan processing, it is VERY IMPORTANT not tomake any major job changes, major purchases, or open new credit cards or lines of credit, as any of these activities could alter your qualifications.

Part five: OBTAIN INSURANCE