Congratulations – the seller accepted your offer on the home of your dreams. But what happens next? Much of it depends on whether you’re buying a resale or new construction home. To set the right expectations, we’re first going to break down the next steps in purchasing a resale. But also stay tuned for our blog post regarding the next steps on a new construction home.
In either buying situation, knowledge is power. Whether purchasing a home at Harbor Club or not, our real estate team wants to help you be aware and prepared for a smooth, stress-free transaction.
Do your due diligence
Now that your offer has been accepted, your next step is to do your due diligence on the resale home. Due diligence is investigating the physical condition of the property as well as the area in which it is located. The period to do your due diligence typically ranges from 10 to 14 days. You’ll need to complete your home inspection during that time frame. Hire a qualified and seasoned inspector who can point out not only the features and benefits of the home but also areas that may need repair. A seasoned real estate agent will help you every step of the way. A due diligence contingency period is a very important step in the purchasing process. It allows you to understand what you are buying and gives you an opportunity to either negotiate repairs or walk away with no risk of losing your earnest money deposit.
Finish up your financing
Speaking of earnest money, if not already, pay your ‘good faith’ deposit within the timeline of the negotiated contract terms. Failure to do so can cause you to default on the agreement, and if the home has multiple interested parties, you could risk losing your dream home. Some negotiated purchase contracts allow for a contingency on obtaining financing. There will be set dates for you to determine with your lender that you will be able to purchase the property with the personal initial financial data you have supplied. And even though you’re likely already pre-approved, you’ll also need to submit all remaining documentation to get underwriting approval for securing your mortgage loan. Additionally, some financing contingencies allow for an appraisal contingency as part of the agreement. As part of the final loan underwriting process, your lender will order an appraisal for the home. Should that appraisal not meet the contract price, there will be an opportunity for you to re-negotiate the price with the seller. During the final loan preparation process, your lender will want you to be diligent in submitting requested documentation and obtaining homeowners insurance.
Power up the power
Even though the seller must handle the cancellation of their utility services (typically effective the day of closing,) be sure to contact the utility companies at least two weeks prior to your scheduled closing date. This gives them enough time to receive your security deposits if needed and process your new utility accounts. After all, things like electricity and water are crucial on move-in day.
Complete your closing
Schedule your final walkthrough at least one to two days before your closing day. That way, you can ensure all agreed-upon repairs are completed and that the home is still in acceptable condition. Then, on closing day, be prepared to sign tons of paperwork – and, best of all, claim those coveted keys to your new, beautiful home.
Buying a home can be challenging – but it doesn’t have to be. Our seasoned Real Estate expert at Harbor Club, Kathy Phillips, makes home-buying easy and stress-free. Learn more about what to expect when you buy a Harbor Club home, and feel free to reach out if you have any questions. We’re happy to help and look forward to talking to you soon.