What Happens After Your Offer Is Accepted? Home Buying Process Explained

Congratulations! You’ve reached a huge milestone by getting your offer accepted. However, the journey doesn’t end there. In fact, accepting an offer sets into motion several important steps of the home buying process.

In this guide, we’ll walk you through what happens after your offer is accepted, explain the offer accepted home buying process, and provide clear insights into each stage. Let’s dive into what you can expect next.

Immediate Next Steps After Your Offer Is Accepted

The clock starts ticking once your offer is accepted. Here’s what you should do immediately:

• Submit Your Earnest Money Deposit: This earnest money deposit shows you’re serious about buying the home. Typically, it’s 1-3% of the purchase price.
• Open an Escrow Account: An escrow company holds funds and documents safely until closing. Escrow ensures that everyone meets the necessary conditions.
• Notify Your Mortgage Lender: Let your lender know your offer has been accepted right away. They will immediately start processing your loan in earnest.

Tip: Stay responsive. Keep all necessary documents handy and reply quickly to your lender and real estate agent to avoid delays.

The Home Inspection and Negotiations

Next, focus on the home inspection process. Schedule your inspection as soon as possible to avoid delays.

Common Issues Found During Inspections

• Roof damage
• Plumbing problems
• Electrical issues
• Foundation cracks

After the inspection, you might need to:

• Request repairs from the seller
• Negotiate a lower price
• Choose to walk away if the issues are too severe

Pro Tip: Always hire a trusted, licensed inspector. They will spot issues you might miss and can save you from costly surprises later.

Home Appraisal and Mortgage Underwriting

After the inspection, your lender will order a home appraisal. This crucial step ensures the home’s value matches the loan amount.

The Appraisal Process

A licensed appraiser visits the home, evaluates its condition, and compares it to similar properties. In addition, they’ll send the report directly to your lender.

Understanding Mortgage Underwriting

At the same time, your lender reviews your finances to confirm you can repay the loan. Expect to provide updated pay stubs, bank statements, or letters of explanation. This is a key part of the home buying process.

Potential Issues:

• Low Appraisal: If the appraisal comes in lower than your offer, consider renegotiating or covering the difference.
• Underwriting Conditions: Be prepared to answer questions or provide additional documents to satisfy underwriting requirements.

Reviewing the Closing Disclosure and Preparing to Close

Furthermore, about three days before closing you’ll receive your Closing Disclosure.

What Is a Closing Disclosure?

The Closing Disclosure outlines your final loan terms, monthly payments, and closing costs.

How to Review It

• Verify the loan amount, interest rate, and monthly payment.
• Check that closing costs match earlier estimates.
• Confirm details like the spelling of your name and property address.

Important: Federal law requires you to receive the Closing Disclosure at least three business days before closing. Use this time to review everything carefully and ask questions if needed.

Final Walkthrough and Closing Day

Following the disclosure review, you’ll move on to the final walkthrough. This usually happens within 24 hours before closing.

Checklist for the Final Walkthrough

• Check that the seller completed all requested repairs
• Check that appliances and systems are functioning properly
• Ensure the home is clean and vacant (unless agreed otherwise)

On closing day, make sure you bring:

• A valid photo ID
• Certified funds for your closing costs
• Lots of patience for signing numerous documents

Once you complete the signing process and the transaction funds, you’ll finally receive your keys!

Common Pitfalls of the Home Buying Process

To protect your transaction, avoid these mistakes:

• Don’t Make Large Purchases: Buying furniture or a new car can impact your credit score and debt-to-income ratio.
• Don’t Switch Jobs or Open New Credit Accounts: Stability remains crucial during underwriting.
• Stay Communicative: Keep in close contact with your lender and real estate agent. Prompt communication prevents last-minute surprises.

FAQ Section

How long does it take to close after an offer is accepted?

It typically takes 30 to 45 days to close, depending on your loan type, inspections, and lender efficiency. Typically your purchase contract a “Close of Escrow” date, also known as a COE. The loan typically needs to close by this specific date which can vary by contract and geography.

Can a home seller back out after accepting an offer?

Sellers can back out under certain conditions, but doing so without legal cause could expose them to penalties.

What if the home appraises lower than the offer price?

You may renegotiate the price, make up the difference, or cancel the deal, depending on your contract terms.

What happens if financing falls through?

If financing fails, you might lose your earnest money unless your contract includes financing contingencies.

Conclusion

Getting your offer accepted is an exciting achievement, but it’s only the beginning of the final phase of buying a home. From earnest money to the closing disclosure, every step matters for a smooth transaction.

At Agave Home Loans, we make the offer accepted home buying process as stress-free as possible. Our expert team will guide you from start to finish.

Contact us today to get expert help navigating your home buying journey and turn your dream into a reality!