Congratulations, your offer has been accepted!
…Now what?
No worries, beycome’s strategy has you covered. Read the step by step process below for knowing everything you’ve got to do before you move into the new house.
Verify the Contract and Deadlines
The contract is the most important document in the FSBO transaction, so don’t take it lightly. A real estate attorney is a powerful resource and can protect your legal rights. They will verify that the terms are clear and enforceable, as well as make suggestions for improvements.
Together you can look over the deadlines for certain tasks you must complete. Keep in mind that during each of these steps, you must check in with the buyer and their representation, whether they’re a realtor or an attorney. Staying on track with deadlines helps you make it to closing without any setbacks.
An attorney will also explain difficult passages and look for clauses that potentially cause you problems later on. Visit our marketplace of trusted providers for licensed attorneys who can help you out.
Earnest Money:
Earnest money is an initial down payment that shows sellers how “earnest” you are about buying the house. These funds help the seller feel comfortable about taking the property off the market while you secure financing and make other preparations.
Earnest money ranges from 1% to 5% of the sale. In an FSBO situation, you should hire an unbiased third party as your escrow agent instead of giving it directly to the seller. Contact a real estate attorney or a title company to act as your escrow agent.
House Inspection:
Hire a licensed state inspector to make a walk-through of the home. Plan on being present on the date of the inspection to get quick answers to any questions you may have. They will check the foundation, roof, interior and exterior, electrical, plumbing, appliances, heating and cooling, and signs of any pests. They should give full disclosure over any items that make the space unlivable, or items that are not up to code as per state standards.
If you need a pest exterminator, consider calling the professionals at Aptive
Getting a tailored quote based on your needs and choosing one of Choice Home Warranty’s plans is easy. Just click here at reviews for choice home warranty
The inspector will hand you a report of their findings, which you should hand over to the seller in a prompt manner. If any part of the home needs to be updated, the seller will have to complete these tasks in a set amount of time before closing.
Secure Financing:
Compare and choose your mortgage lender. Pre-approvals and pre-qualifications don’t take much time, but they involve a review of your credit report to see exactly what you qualify for.
Be prepared to gather and submit a lot of documentation. While every financing option is different, here are the basics:
- Two forms of identification
- Proof of income
- Recent tax returns
- Current bank statements
- Credit report
The Title:
Contact the title company. They will inspect the property’s title and offer title insurance once everything clears. Why? The goal of a title company is to protect the lender from claims, lawsuits, or disputes about the house. This includes outstanding mortgages, unpaid taxes, and liens. They conduct a search of property records to confirm that the property does in fact belong to the seller and no one else has rights to it.
Appraisal:
After the inspection, a lender confirms the value of the home before giving you the mortgage. It’s important that this is done ASAP because it can take as much as 10 business days to complete.
Insurance:
A homeowner’s insurance policy is required. Feel free to browse around for the best deals in your area. These will protect you in case of fire, flood, theft, and other unforeseen circumstances that suit your needs.
Schedule Utilities:
You’ll want power as soon as you’ve moved in, so make sure to get all the utilities in your name on the closing date at the earliest. Water and sewer, gas, electricity, phone, cable, internet, trash collection, and security systems are all factors to consider.
Schedule Closing Date:
The closing procedure changes from state to state. At closing, there must be certain representatives present, so schedule a date that works for all involved:
- The buyer and seller
- The representatives of the buyer and seller
- The title representative
- The mortgage representative
- Other attorneys, co-signers, or needed parties
Final Walkthrough:
48 hours before closing, you have a chance to make sure there are no last-minute issues before closing. You can check for damages that perhaps you didn’t catch before, or you could simply walk in and view items included in the sale (such as the fridge and other appliances).
Close:
It’s time to gain ownership of your new home, FSBO-style! Bring your identification, a cashier’s check for closing costs, and proof of homeowner’s insurance. Your real estate attorney will give you information about anything else you need to bring.
Now get going! Your new home is waiting.
Comments are closed.