There’s a lot of talk about how to win a bidding war on the home of your dreams and the best and worst times to buy. But what happens once you sign a contract? As a buyer, you should be relieved to learn you now have the power. You are able to leave the deal before the closing if you discover problems with the home and can’t come to an agreement with the seller.
Here’s a what to expect after you sign a contract:
The first step after signing a contract is to deliver your earnest money to the title company. The title company will be listed in the contract and your agent will assist you in making sure it is delivered to the right place. Keep a copy of earnest money receipt for your records, either digitally or hard copy.
The sellers are required to provide various disclosures such as a Seller’s Property Disclosure, Lead Based Paint Disclosure (depending on the age of the home) and a Square Footage Disclosure. Your real estate agent will help you review these documents for anything concerning.
If you are buying a home with a loan, you will likely be required to have an appraisal on the property. Appraisals ensure the home is a good investment for the bank (and you) in the event of the bank has to foreclose on the home. Even if you are buying with cash, an appraisal is a good idea. Sometimes in fast moving markets (aka Denver for the past several years) buyers pay cash over the appraised value. We don’t recommend this practice, but we can offer other recommendations for standing out in the event of a bidding war.
After your appraisal is completed and your credit, income and debt ratios have been verified, your lender will decide on loan approval. All parties involved work with you and the lender to do everything possible to get the loan approved. If you were preapproved, this step will be far less stressful. (Buyer Tip: Always get preapproved before you start the house hunt!)
Everything looks good and it’s time to make this house yours! Your agent will assist in scheduling the closing with the selling side and the title company. If you are selling a house in order to buy your new house, you need to be sure to close with enough time to have the money wired to the title company. Congrats on buying a new home!
These are the biggest steps you will encounter on your home buying journey. Having a trusted agent by your side through the process will take the weight off of your shoulders and allow you to sleep better at night.
Get in touch to get started on your home search!