Seller Accepted Your Offer? Here’s What Happens Next

Congratulations on having your offer accepted on a home. This significant achievement marks the beginning of a structured process. It requires careful attention to detail and timely action to navigate the path toward homeownership.

Initiating the Transaction Process

After an offer is accepted, the next step involves formally signing the purchase agreement. This document legally binds both parties to the sale terms, including price, contingencies, and timelines. At this stage, the buyer typically provides an earnest money deposit.

Earnest money demonstrates the buyer’s serious intent. This deposit, typically 1% to 3% of the sale price, is usually paid within one to two days. Funds are deposited into an escrow account, held by an escrow agent or title company, not given directly to the seller.

Escrow is a financial arrangement where a neutral third party holds funds and documents for the buyer and seller until transaction conditions are met. This protects both parties by securing funds and documents, like the deed, until contractual obligations are fulfilled. The escrow agent ensures money is disbursed correctly, adding security and transparency.

Conducting Due Diligence

After signing the purchase agreement and securing earnest money, the buyer begins due diligence. This period, often an inspection contingency, allows the buyer to assess the property’s condition. A general home inspection provides an overview of the property’s structural and mechanical systems.

Beyond a general inspection, buyers may consider specialized inspections for pests, radon, or sewer lines, depending on the property. These inspections reveal potential issues not apparent during a casual viewing, such as hidden water damage or hazardous gas levels. Selecting qualified, licensed inspectors ensures accurate reports.

Buyers should carefully review inspection reports to understand the property’s condition and identify concerns. This may lead to negotiations with the seller for repairs, credits, or a price adjustment. Buyers might withdraw their offer if major issues are insurmountable. Reviewing seller disclosures and other relevant documents, like HOA records, is also important for a complete understanding.

Navigating Financing and Legal Requirements

Once the offer is accepted, financing progresses. Lenders require an appraisal to determine the property’s market value, ensuring the loan is collateralized. A licensed appraiser inspects the home, considering its condition, size, and features, comparing it to recent sales. If the appraised value is lower than the purchase price, it can impact the loan amount, potentially requiring renegotiation or an increased down payment.

Concurrently, loan underwriting proceeds as the lender evaluates the buyer’s financial health. This involves reviewing income, credit history, and assets to confirm loan repayment ability. Buyers should submit financial documents like pay stubs, bank statements, and tax returns. The underwriting team works to approve the loan, a prerequisite for closing.

In parallel with financing, a title company ensures a clear transfer of ownership. They conduct a title search, examining public records for the property’s ownership history and any liens or claims. This confirms the seller’s legal right to transfer the property free of undisclosed issues. After a clear search, title insurance is issued, protecting both buyer and lender from financial losses due to undiscovered title defects.

Finalizing Pre-Closing Steps

As the transaction nears conclusion, formal actions finalize the purchase commitment. Contingencies, conditions for the sale to proceed, must be formally removed in writing. These typically include inspection, appraisal, and loan approval, signifying the buyer’s firm intent to close. Removing contingencies usually involves submitting a form documenting satisfaction or waiver.

Just before closing, a final walkthrough of the property is conducted, typically within 24 hours. This allows the buyer to confirm the property is in the agreed-upon condition, negotiated repairs are complete, and the home is vacant. Buyers should meticulously check all appliances, systems, and fixtures for functionality and ensure no included items have been removed. This final check prevents unexpected issues after ownership transfer.

Buyers must meticulously review the Closing Disclosure (CD) at least three business days before closing. This document provides a breakdown of loan terms, projected monthly payments, and closing costs. Compare the CD with the initial Loan Estimate for discrepancies in fees or terms. Understanding every item ensures transparency regarding financial obligations at closing.

The Closing and Possession

Closing day marks the culmination of the home-buying journey, where ownership officially transfers. Typically, the buyer, seller, real estate agents, and an escrow or title company representative attend. All parties gather to complete the legal transfer.

During closing, the buyer signs numerous legal documents. These include the promissory note, the buyer’s promise to repay the loan, and the mortgage or deed of trust, which pledges the property as loan collateral. Other essential paperwork includes final disclosures and affidavits affirming facts about the buyer and property. Each document serves a specific legal purpose in formalizing the transaction.

The funding process is a key component of closing day. The buyer’s funds for the down payment and closing costs, along with the lender’s mortgage funds, are transferred to the escrow or title company. The title company then disburses these funds to the appropriate parties, including the seller, real estate agents, and service providers, ensuring all financial obligations are met. Once documents are signed and funds transferred, the buyer receives the keys, officially taking possession of their new home.