After you have been touring homes and find one that fits your needs then it is time to move quickly and make an offer. This is a very exciting time during the home buying process as you take the first big step. After you submit your offer, one of three things will happen. The offer will either be accepted, countered or rejected. Here is a closer look at the possible outcomes.
Offer is rejected – If your offer has been rejected, this might mean that the seller could feel that your offer price and terms are too far from their goals and are not willing to negotiate. You might want to consider moving on as there is too big of a spread between you and the seller.
Offer is countered – If your offer is countered by the seller then you have a chance to continue to negotiate. Figure out if the seller’s counter offer is acceptable or if you may need to negotiate and modify terms some more. This process can go back and forth until you either agree on terms or if one party decides to walk away.
Offer is accepted – If your offer is accepted then things can become more real and very exciting. Here are the next steps to follow after the acceptance of the deal and signed offer.
- Financing – Contact your mortgage broker and tell them the terms of your deal. They will order an appraisal to verify that the price you paid is a fair market value.
- Home inspection – A home inspection is key as it is an in depth inspection of the home’s true condition. Depending on the report, you may request that the seller remedy some repairs, ask for a concession or decide to pass on the home.
- Homeowner’s Insurance – Lenders will need to confirm that you have an insurance policy ready for the home. Shop for prices and negotiate if need be. Sometimes you can even save if you combine things like home and auto plans.
- The closing – Things will happen behind the scenes as you progress towards the closing and you may be asked for some information. Your lender will prepare your loan documents, your attorney will prepare your closing documents and title company will be doing research. It is your responsibility to make sure that you have your down payment ready. Before your closing you will have a final walk through of the property to inspect the condition. Next you will proceed to the closing table and complete everything by signing all documents. Once this is finished then you are officially a homeowner!