So you’ve found the perfect home. Now what?

MAKE AN OFFER

First you will want to make an offer.  But an offer is more than just saying how much you want to pay for the house.  Your offer should include these four things:

1. The price you are willing to pay
2. Your preferred closing date
3. How you will finance the purchase along with either a proof of funds (paying cash or a mortgage pre-approval, if financing)
4. The contingencies of your offer (including inspections and mortgage approval)

COUNTER OFFERS

Once you’ve made your offer, you will most likely be met with a counter offer.  If, after successive counter offers, you and the seller reach an agreement on price and terms, it is called an “accepted offer.” This is a non-binding agreement that you will want to put into writing (i.e. signed contract) as soon as possible.  The seller’s attorney will then send your attorney the contract of sale and once both parties have signed, you have a fully-executed Contract of Sale.

SECURE YOUR FINANCING

Once you have a signed contract, you will need to formally apply for the mortgage. Your lender will order an appraisal of the property where your Realtor will meet the appraiser at the property and supply the appraiser with appropriate comparable sales.  When the loan is fully underwritten, your lender will provide you with a Mortgage Commitment letter.

CLOSE THE DEAL

After the contract is executed, you will need to do a title search to make sure there are no outstanding claims against the title of the property as well as obtain a homeowner’s insurance policy. Before the closing, you will have one last chance to walk through the property to make sure everything is the way it was when you made your offer.  At the actual closing, you will sign all the required paper work and pay all closing costs, legal fees, property adjustments, and transfer taxes. Then you’ll receive a copy of all the documents and finally, be given the keys to your new home.

If you or someone you know is deciding to buy a home, contact us today and take advantage of all the knowledge, experience, and professionalism Houlihan & O’Malley offers.