Did you and your partner just receive news that you won in multiple offers, but now have no clue what comes next? This article will help you understand the 7 steps after your offer is accepted, so that you don’t miss any critical information and delay getting your new house keys.
I’m Bailey Beckman, a realtor in the Twin Cities that helps take my clients from house hunters to house owners.
Steps AFTER your offer is accepted:
- Submit your earnest money
- Schedule your inspection (if you have one)
- Have your lender order the appraisal (if you are financing the home)
- Complete any documentation needed by your lender
- Prepare your funds for closing
- Schedule a final walk-through
- CLOSING DAY!
Step 1: Submit Your Earnest $$$
Earnest money is that “good faith” money that you are allowing the seller’s agent to hold on to until closing to show that you are serious about the home. In the Twin Cities, you will most often submit this money via a secure link that your realtor will send you.
**Remember that this money MUST come from the bank account of one of the buyers on the offer.**
Step 2: schedule your home inspection
The most common contingency in purchasing a home is your home inspection. You will typically have a short window of time to get this inspection scheduled, completed, and then have time to review it, between 4-7 calendar days. Depending on the company you choose to work with and the size of the home, it will cost between $300-$600 for an inspection. You do not get this money back even if you cancel your offer.
Step 3: lender will order the appraisal
Your lender will schedule the appraisal for the home. The appraiser will evaluate the home you offered on and give a value to the mortgage lender. A lender will not finance anything more than the appraised value! Some lenders will charge you when the appraisal is conducted and others will have the charge included with closing costs. Make sure to ask your lender about when you will pay for this step, so you can prepare your finances.
Step 4: complete any remaining documentation for your lender
While the appraisal is pending, you will need to complete any missing information that your lender and underwriting team need. For example, if you are participating in Minnesota’s first time home buyer down payment assistance program, you will need to complete a buyer’s education course before the financing is approved. You DO NOT want your closing delayed, so be sure to get those documents to your lender in a timely manner.
Step 5: prepare your funds for closing
You will receive a “closing disclosure” from your lender 3-7 days before closing. This document will show how much “cash to closing” you need to bring. You will go to your bank, get a cashiers check for that amount, and bring it with you when you go for signatures at closing.
Step 6: schedule your final walk-through
This is just one last chance to see the home before you sign the dotted line. It ensures that the property is in basically the same condition as when you submitted your offer. You don’t want to have submitted an offer, not seen the house for a month, to then find out that a tree fell on it 7 days before you bought it.
step 7: CLOSING DAY!
You will need to bring:
- photo ID
- cashiers check
- personal checkbooks (just in case some of the numbers are a smidge off)
Closing takes about an hour and then you get your keys!
You now have a clue on what comes up after your offer is accepted in a bidding war! This will help you stay on track and avoid any closing delays.
Feel free check out the other videos on my YouTube page if you’d like to learn more about the Twin Cities or buying a home in general.