What happens after an offer is accepted on a house?
When you initially sign a purchase offer, what do you think about next? Moving in, decorating, and imagining get togethers with friends and family. But hold the phone! You’ve missed a few steps in between.
After you give in your offer, the next step is waiting. You don’t know what the sellers are going to think about your offer. Let’s explore the options.
Let’s say the sellers flat out reject your offer. That is a call for disappointment. See what information your real estate agent can glean from the seller’s agent. Was your offer way too low? Did they accept another offer instead? You may choose to walk away, or you may choose to counter offer. Let your real estate agent guide you during this scenario.
Or, after looking at your offer, the sellers may counter offer. So something needs to be adjusted. Are you willing to raise your price? Change your closing date? Decide that you really don’t need the sellers to leave behind that inflatable backyard unicorn? Change what is comfortable, but never be afraid of walking away. The deal has to be comfortable financially for you.
And the final scenario – your offer is accepted. Yay! Is it time to think of moving in, decorating, and family get togethers? Not quite yet. Get ready for some real fun. What happens after an offer is accepted on a house?
Assemble your deposit
To make your offer legally binding, you need to provide the earnest money, also called a deposit. This should be on the offer. The deposit shows the seller that you are serious about your home.
Deposit: Do not confuse it with the down payment. This money will be held in trust until the home closes. If you should walk away from the sale without reason, the seller may be allowed to keep this money.
Say adios to your conditions
Many offers are conditional. You could have requested that your offer depends on your selling your own home, getting financing, or that the house passes an inspection. What happens after an offer is accepted on a house? You need to start working on getting rid of these conditions so that the transaction can close.
Get that financing
Were you pre-approved for a mortgage before starting your home search? If so, that was a smart decision! Now that your offer was accepted, you need to get the actual mortgage.
Pre-approval isn’t the same thing as getting an actual mortgage. Think of it as the starting step, the introduction, or approval “lite”. And even if you were pre-approved, you could theoretically be denied the mortgage itself.
To make sure that that doesn’t happen, don’t do anything with your finances during this time. No shopping sprees, no large credit card purchases…don’t even change jobs. Any change, or even a tweak, may cause your finances to look less than optimal, and that can mean no mortgage for you.
Your mortgage lender will let you know what documentation you need to provide. You probably will need to get a home appraisal. Your lender doesn’t want to loan you $200,000 for a home that is only worth $100,000.
Once you have been approved, provide the documentation to your real estate agent.
What happens after an offer is accepted on a house? You can actually change your mind! It’s true – but not for just any old reason. Here are some common situations where you can back out:
Make sure you have contingency clauses in your offer that account for these situations. Ask your real estate agent or a real estate lawyer to review the clauses. Better safe than sorry!
The Shamrock Way
What happens after an offer is accepted on a house? You go to Shamrock Financial. With decades of experience under our belt, we definitely know mortgages. Let us help you with friendly advice and great financing. Home ownership and Shamrock Financial – what could be better?