My blog provides awesome tips for buyers and sellers to help save time and money, while keeping you informed along the way.
So you found a home, made an offer, probably re-negotiated with the seller, and now the offer is execute/accepted, but where do you go from here? A few will follow immediately and others take some time, let's start with the things we have to take care of immediately.
Within three days of the contract being executed you or your agent (preferably your agent) will have to turn in a check for earnest money and a check for option fee if it applies to your contract. The earnest money is usually 1% of the offer value, if you offer $100,000 then your earnest amount is $1,000. This is like a security deposit for the home it lets the seller know that you are sirius and that you are not wasting there time. You can get this money back depending on why the contract broke, but if everything goes good and you close on the home the earnest money goes towards the home.
Next is the option money, if you opt in for this the price can vary that is negotiated between you and the seller. With an option the seller agrees to give you however many days you agree on to do inspections, backout of the deal, and you will only lose the option fee and not the earnest money. Who receives this money? The earnest money goes to the title company made out to the title company in the form of a check and the option fee is made out to the seller and given to the sellers agent in the form of a check.
Your inspections are done and you decide to move forward with the closing, what now? The next 20-30 days the title company and your loan officer get to work on making sure everything is clare and that you close on time. During this time your job is to make sure you don't do anything that will ruin you chance of actually getting that loan approved on the closing day meaning don't go out and get anything on credit before consulting with your loan officer. The appraisal will be done during these days and you should be ok if your agent ran their numbers correctly. Even then you might be a few thousand dollars off but that can always be negotiated with the seller. Also in this time frame you will be getting a survey if the seller did not provide one.
CLOSING DAY IS HERE!!!! This is what you've been waiting for through all the searching, negotiating, and anticipation you're hours from the signing table. All you have to bring is your ID and a cashiers check for your down payment "do i just show up sign and I get my keys?" No the more than likely you will be scheduled first the title company will explain everything to you, your monthly payment, taxes, HOA, and answer any questions you may have. Once you're done singing the title company will make sure the home is funded and that the seller signs the property over to you. Depending what time the seller is scheduled they should call your agent and hour or two after you leave to get your keys.
CONGRATULATIONS!!! You are now a home owner!
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