So Your Offer Was Accepted. What Happens Next?
Great news! The seller accepted your offer. You’re now officially "under contract" to buy your new home.
So, what happens between now and getting the keys? It's an exciting time, usually taking about 30 days (sometimes shorter or longer depending on what you and the seller agree on), where several important things need to get done. Think of it as the final steps to make the house yours.
Here’s a simple guide to what will happen:
Pay Your Earnest Money Deposit
First, you'll pay an earnest money deposit. This deposit shows the seller you're serious about moving forward with the purchase. It's typically around 1% of the purchase price. You'll give this deposit, usually as a check or wire transfer, to your agent or the closing attorney within a few days. Rest assured, it's kept safe in a special account and counts towards your purchase at the end.
Use Your Due Diligence Period
Due diligence begins the moment you go under contract. This is a very important, short period, often 5-10 days as specified in your contract, where you get the opportunity to really check out the house. During this time, you can back out for any reason and get your earnest money back if you change your mind.
During due diligence, your main task is getting a home inspection. I prefer to schedule this with an inspector right away. They will thoroughly examine the roof, heating and cooling systems, plumbing, electrical components, and the structure to find any hidden issues. Your realtor (hi, that's me) can connect you with a trusted, local inspector and facilitate the scheduling with them. You should also review the seller's disclosure form, which details what they know about the house, and any HOA documents if applicable. Remember, this disclosure is something you can also request and review even before putting in an offer. Based on the inspection findings and your review, you can decide to move forward as planned, ask the seller to make repairs or provide a credit, or decide not to buy the house (as long as you're within your Due Diligence timeframe).
Work with Your Lender on the Loan
The moment we go under contract, I (your realtor) will reach out to your lender to let them know your offer was accepted. They will then begin the process of finalizing your mortgage details and will order an appraisal of the home. Your main responsibility here is to send your lender any paperwork they request as quickly as possible to keep the process moving smoothly.
The Appraisal
As part of the loan process, the lender sends a licensed appraiser to determine the home's current market value. This is necessary because the lender needs to ensure the house is worth the price you're paying. Usually, the appraisal value matches or exceeds the purchase price. If it happens to come in lower, I will help you understand the situation and discuss the next steps and options available with the seller and the lender.
Title Search (Checking Ownership)
In Georgia, a closing attorney plays a crucial role in checking the property's ownership history, also known as the "title." They conduct a thorough search of public records to make sure the seller legally owns the home and that there are no outstanding debts, liens, or other problems attached to the title. While the attorney handles the search itself, it's highly recommended that you purchase an "Owner's Title Insurance" policy. This protects you from potential title issues that might surface later, and it's a one-time cost paid at closing.
Get Homeowner's Insurance
You will need to secure homeowner's insurance to protect your new home against potential hazards like fire or storm damage. Lenders require this coverage to be in place before finalizing the loan. Be sure to shop around for a policy that meets your needs and provide the policy details to your lender and the closing attorney before your scheduled closing day.
Do the Final Walk-Through
Right before closing, typically the day before or even the day of, you'll do a final walk-through of the house. Your realtor will facilitate this and schedule it on your behalf. This is your last chance to check that any repairs the seller agreed to make have been completed properly. You'll also want to ensure everything looks okay and confirm that no damage has occurred since you last viewed the property.
Prepare for Closing Day
Getting ready for the final step involves a couple of key tasks. You'll need to carefully review the "Closing Disclosure" form provided by your lender, which itemizes all the final loan details and costs. Additionally, you'll need to prepare your funds for the down payment and closing costs. The closing attorney will inform you of the exact amount needed. You will likely need to obtain a certified check or arrange a wire transfer – always be sure to confirm wire transfer instructions directly and securely with the attorney's office!
Closing Day!
This is the day you officially take ownership of the home! You'll go to the closing attorney's office for the appointment. Remember to bring your photo ID and typically a blank check as well, just in case of any minor last-minute adjustments. You will sign several important documents related to the loan and property transfer. The seller will sign the necessary paperwork to transfer ownership to you. Once all the money is exchanged and the papers are signed... you get the keys!
Don't Worry, You Have Help!
This might seem like a lot, but remember, I (your real estate agent) will be there to hold your hand through every step. I'll coordinate with the lender, inspector, and attorney, answer your questions, keep track of important dates and help make sure everything goes smoothly.
Buying a home is a big deal, and being under contract is an exciting part of the process.
Have questions about buying a home in Atlanta or the surrounding areas? Don't hesitate to reach out – we'd love to help!