So you got a home offer accepted? Lucky you! With so much competition in the housing market across the country, this is no easy feat.
Many would-be homebuyers are submitting dozens of offers and still not getting a new home. So to have an offer accepted means you are one of the lucky ones. And you probably have the best real estate agent in town.
But if this is your first time buying a home, you might be wondering what happens next. Unfortunately, you still won’t move in for a while. Now it’s time to go through the home closing process.
Wondering what happens behind closed doors during the closing process? Want to know how and when your loan will actually close and you’ll receive the keys to your new castle? Read on below to find out now.
Understanding the Home Closing Process
Having an offer accepted by a seller is the first step in obtaining your new home. You’ve now entered the closing process, which usually takes between 30 and 45 days, depending on many different factors.
First, an escrow account will be opened. This is facilitated by a third party, and it’s where funds go between the buyer and seller to ensure fairness.
You’ll then have a title search performed on your behalf, to ensure there are no issues or additional liens against the property. Then, you’ll get title insurance.
Your lender will also need to determine the home appraisal value, to ensure they aren’t paying for a home that’s not worth as much as the purchase price.
Closing costs are usually paid by the buyer. Sometimes, the buyer can have some or all of the costs wrapped into the mortgage.
You’ll need to schedule a home inspection right away. This will run a few hundred dollars, but lets you know if there are any major issues regarding the integrity of the home.
If any costly repairs will be needed with the home, you can renegotiate with the seller on a final closing price. With the price locked in, you’ll schedule a closing date.
This is when you will sit down with the title company to sign all of the paperwork, submit the final payment for the home, and get your keys. It’s a long process, but your real estate agent and a title company representative will handle most of it on your behalf.
Are You Still Looking for a Home?
Are you still looking for a home to put an offer on? There isn’t too much inventory in the current real estate market.
But it all depends on where you are looking. Palm Beach, Florida is a popular destination. And surprisingly, you can still find great homes for sale here. Have a look here to see what it takes to get the perfect house in the area.
Regardless of where you plan to buy a home, finding the right real estate agent is one of the best things you can do to ensure home buying success.
The Benefit of Homeownership
Once you walk away from the home closing table with keys in hand, you are officially a homeowner, for better or for worse. As a smart homeowner, it’s now your job to take care of your home and manage your finances well to ensure you never fall behind on payments.
While homeownership requires ongoing effort on your part, the benefit of increasing equity and price appreciation will be worth it in the long run.
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