Once your offer has been accepted, it is time to work on the final details of purchasing your home. Several tasks are accomplished during this phase of the process:
Arrange to have a professional inspect your home. Inspectors are trained to spot electrical, plumbing, and structural problems that may not be noticeable to you. A home inspection is not required, but it is in your best interest to do one to avoid surprises upon moving in. This is an expense incurred by the buyer and is usually included in your closing costs.
You may also need to get a pest inspection on the property to make sure there is no structural damage caused by termites. Your agent can usually make a recommendation of a reputable inspector.
Applying for a Loan
Once an offer has been accepted, contact your mortgage specialist to officially apply for a loan. Be prepared to provide the following for your loan application:
- W-2s and/or tax returns from the past 2 years.
- Proof of gross monthly income for the past 30 days.
- Proof of investment income, including rental incomes.
- A list of creditors, including account numbers, balances, and monthly payments.
- Two months’ worth of banking statements.
The Final Walkthrough
Prior to closing, conduct a final walk through and inspection of the property. Schedule this as close to the closing date as possible, preferably on the morning of the closing. Your home inspector will not be with you during this walk through, so it is your responsibility to inspect the home and ensure everything meets your approval.
Things to look for during your walkthrough:
- The seller has repaired all items included on the purchase agreement.
- The house is in “as-was” condition (everything is in the same condition as it was when you signed the purchase agreement).
- The house is vacant and clean. The home does not have to be spotless, but there should be no remaining trash or junk left behind in the house or in the yard.
- Any tenants have moved out prior to your closing unless you have agreed for them to stay.
Usually at the time an offer is accepted, or after you have a commitment from your lender, a date and time will be arranged for your closing. The closing procedures will be handled by an attorney of your choosing. Several days before, you will be told the total dollar amount you will need to bring to closing by the closing attorney. They will also provide you with any additional information you may need to prepare yourself for the proceedings.
On the day of closing, remember to bring:
- A certified check for the total amount of your closing costs.
- A picture ID, such as a driver’s license.
- Your personal checkbook.
- Evidence of mortgage insurance (if this information has not already been requested).
During the closing, details of the sales contract will be explained to you. If everything meets your approval, you will sign the contracts to finalize the deal.
Congratulations! You are now a new homeowner! 🙂