Finding the right home and making an offer is an exciting milestone, but it is not the finish line. Once your offer is accepted, there are several important steps that take place before you officially become the homeowner.
Understanding what happens between an accepted offer and closing can make the process feel much more manageable.
1. The Purchase Agreement Is Finalized
Once the seller accepts your offer, the purchase agreement becomes the roadmap for the transaction. It outlines important details such as the purchase price, closing date, contingencies, and other terms agreed upon by the buyer and seller.
Your real estate agent will help you understand the terms and keep track of important deadlines throughout the transaction.
2. Earnest Money Is Deposited
Depending on the terms of the agreement, the buyer may be required to deposit earnest money. This deposit demonstrates the buyer’s good-faith intention to follow through with the purchase.
The amount and timing of the deposit are outlined in the purchase agreement, and the funds are typically held in an escrow account until closing or otherwise handled according to the terms of the agreement.
3. The Home Inspection Takes Place
For many buyers, the inspection is one of the most important steps after an offer is accepted.
A professional home inspector evaluates the home’s condition and identifies potential issues with things such as the structure, roof, plumbing, electrical systems, HVAC and other components.
An inspection doesn’t mean every issue needs to be fixed before closing. Instead, it gives the buyer additional information about the property so they can make informed decisions and address any applicable concerns according to the terms of the purchase agreement.
4. The Appraisal Is Completed
If the buyer is financing the purchase, the lender will typically order an appraisal to determine the property’s market value.
The appraisal helps the lender evaluate whether the home provides sufficient collateral for the loan. If the appraised value differs from the purchase price, the situation may require additional discussion or action depending on the terms of the transaction and the buyer’s financing.
5. Your Mortgage Moves Toward Final Approval
While the inspection and appraisal are taking place, the lender continues working on the buyer’s mortgage.
The lender may request additional documentation, verify employment and financial information, and review the buyer’s finances before issuing final loan approval.
It’s important for buyers to avoid making major financial changes during this time. Opening new credit accounts, making large purchases or changing jobs could potentially affect the mortgage approval process.
6. The Title Is Reviewed
Another important part of the process is making sure the seller can legally transfer ownership of the property.
A title search is performed to identify potential issues such as liens, ownership claims or other matters that could affect the transfer of the property. Title insurance may also be involved to provide protection against certain covered title-related issues.
The title company or closing professional helps coordinate this portion of the transaction.
7. Final Details Are Coordinated
As closing approaches, there are plenty of details happening behind the scenes.
The buyer’s lender, real estate agents, title or closing company, and other professionals involved in the transaction communicate to make sure the necessary paperwork and requirements are completed.
Buyers should also make arrangements for homeowner’s insurance, utilities and any other items that need to be in place before closing.
8. The Final Walk-Through
Shortly before closing, the buyer typically has an opportunity to complete a final walk-through of the home.
This isn’t another inspection. Instead, it’s an opportunity to make sure the property is in the expected condition and that agreed-upon repairs have been completed, if applicable.
It’s also a chance to confirm that items included in the purchase agreement are still present and that the home is ready for the buyer to take possession.
9. Closing Day Arrives
Finally, it’s time to make it official.
At closing, the necessary documents are signed, funds are transferred, and the ownership of the property is officially transferred according to the applicable closing and recording procedures.
Once everything is completed, the buyer receives the keys and can officially begin the next chapter in their new home.
How Long Does It Take?
The timeline between an accepted offer and closing can vary. A financed purchase often takes several weeks, but the exact timeline depends on factors such as the purchase agreement, financing, inspections, appraisal, title work and any issues that arise along the way.
That’s why staying organized and communicating with your real estate professional, lender and closing team is so important.
Your Agent Is There Throughout the Process
For buyers, the time between an accepted offer and closing can sometimes feel like a lot is happening at once. There are deadlines to meet, documents to review and decisions to make.
That’s where your F.C. Tucker Emge real estate agent can be an important resource. From helping you understand the purchase agreement to coordinating with the professionals involved in the transaction, your agent can help keep the process moving and make sure you know what to expect along the way.
Buying a home is more than finding the right property. It’s understanding the process from the moment you make an offer to the moment you receive the keys. With the right professionals by your side, you don’t have to navigate it alone.
For all of the latest information on our local real estate market in Southwestern Indiana and Western Kentucky, you can always trust the professionals at F.C. Tucker Emge. Our agents have superior training and resources at their disposal to better educate you about the road to homeownership. Even if you are 6-12 months (or more!) out from making a change, there is a lot to learn about the home buying and selling process, and our agents can help you learn what you need to know so that you can be confident in your decision and have a smooth experience when the time comes. Let’s Talk!
