accepted offer: Now What?
Congratulations, you are on your way to owning your very own home! Follow these suggestions (and your Realtors's advice) so that closing with go as smooth as possible.
You will be asked for a down payment on the home you are purchasing. You can choose to put down as much or as little as you want (depending on your mortgage), but remember, the more you put down toward the total price of your home, the less time it will take you to pay off and the less your mortgage payments will be every month.
Your offer must be accomanied by a bank draft or wire transfer. Assuming the sale goes through, this money will be applied to the purchase price of the home. If for any reason the sale is not consummated, you will be entitled to receive all of your deposit back.
1. You have a conditionally accepted offer. During this time, each condition specified in the contract must be completed satisfactorily. Each contract is different, but most include the following:
1. Inspection condition: this should be completed as soon as possible after the contract to purchase is signed as unsatisfactory results of the inspection may mean that you will want to cancel the contract.
2. Financing condition: Once the contract is signed, you have a period of time to secure funding. If, for any reason, you are unable to secure funding during the period of time granted to you by the contract (and the seller will not provide a written extension of time), you must decide whether you want to remove the contingency and take your chances on getting a loan. You may choose to cancel the purchase contract.
3. Condo Document Review - There are professional companies that review condo docs to reduce risk of you moving in and finding out there is a special assessment on the horizon.
4. Secure homeowner's insurance. This will probably be required before you can close the sale. Due to such requirements as special fire and earthquake insurance, obtaining this insurance may require a lengthy period of time. It would be in your best interest to apply for insurance as soon as possible after the contract is signed.
4. Contact local utility companies to schedule to have service turned on when you take possession.
You've made it! Once the sale has closed, you're the proud owner of a new home. Congratulations!