Receiving the news that your offer was accepted on the home of your dreams is so exciting! But that excitement can also be tempered with anxiety when you don’t know what to expect next. I have worked in real estate for many years, and I know how overwhelming this time can be for buyers.
I wanted to take a moment to explain what comes next after your offer is accepted, and you enter into escrow. There are three things that you need to do at this stage:
- Arrange for your wire transfer of the 3% good faith deposit. This is due three business days from the date of acceptance.
- Call your homeowner’s insurance company to ensure that the home you’re in escrow on is insurable. Get quotes for homeowners and possibly earthquake insurance too.
- Set-up your home inspections as soon as possible. The sales contract allows for 17 days for the buyer to conduct their due diligence, but in extremely competitive markets, buyers will reduce their inspection contingency period. This can put pressure on buyers to get their inspections completed quickly. Ask for referrals from your real estate agent or people you know and trust.
Additionally, you will need to secure your financing/mortgage approval. A lot of the time, buyers will have already started this process with a pre-approval letter from a mortgage company, and these can help move things along more quickly.
But if you haven’t, you should start shopping for a loan immediately once you sign a purchase contract. Part and parcel of the loan process are getting the home appraised, and most lenders will want to see the home appraises for the sales price, if not more.
All of the above-mentioned items will lead to a final “walk through” of the property just before escrow closing. This is your final opportunity to ensure that the property is what you contractually agreed upon with the seller, and this happens just before the closing date.
Before this, make sure that you have read and signed all of the disclosures from the seller thoroughly. Your real estate agent will be an ally here and can help explain anything that is confusing or doesn’t make sense. Review the title report and easements, and consult with your escrow officer if you need clarification.
Once you reach the closing date that has been agreed upon by yourself and the seller, you will sign all of the final paperwork. Closing costs are paid at this time, and the property will ultimately change hands, and you will take possession of your new home!
I am a CA licensed real estate broker and have been helping clients in the Pasadena area for decades, and I am passionate about helping both sellers and buyers with their real estate goals. If you have questions or need assistance with buying or selling a home, please reach out to me! It would be my absolute pleasure to assist you.