We help lots of people find great homes in Goose Creek, SC. A big part of that job is helping potential buyers navigate their way through the real estate process. Every step, from choosing neighborhoods to look at and setting a budget to making the offer itself, can be complicated. But all too often, that's where the advice ends. What happens next—after the seller has accepted your offer?
Once the offer is accepted, there are some basic steps you should expect. Most of these require action on your part, and while your realtor can walk you through them, it helps to know what to plan for. Here is the buying process from offer acceptance to moving in, in eight simple steps.
1. Earnest money – "Earnest money" serves as proof you are serious about the house and gives the seller some assurance you will follow through. It's a small amount by real estate standards, typically $1,000 and rarely more than $5,000. You pay this in cash immediately when the offer is accepted. The seller will keep this money even if you walk away—it serves as a form of compensation for their lost time on the market (though they may have other legal options as well). Assuming you follow through, it will be deducted from the amount you pay at closing.
2. Home inspection – Most offers are made contingent on a home inspection. You should schedule the inspection right away when your offer is accepted. Ideally, search for and talk to a local inspector before the offer is accepted, so you can move quickly (your realtor can recommend a reliable local inspector). Be sure you ask the inspector what is and is not checked for on their inspection. If you pull out of a contingent offer due to inspection results, you will get your earnest money back.
3. Mortgage paperwork – As part of the offer process, you signed a sales contract. Immediately when this is signed you should notify your lender. Presumably, they have pre-approved you for at least this amount, and they will now start the mortgage process. They will ask you for a lot of paperwork—make a checklist and get them everything as quickly as you can.
4. Title commitment – A title commitment is an official review of the property title and its legal history. This is conducted by a title company that may be named in the sales contract. Your lender or realtor can refer you to a title company if needed. This report will show any liens on the property. If there is anything unexpected you should consult with a lawyer—do not take the seller's word for it.
5. Appraisal – Your lender will start an appraisal process for you, but only when you tell them the inspection is complete and that the offer is going forward (so keep them in the loop). They will order the appraisal so that they can verify the house is worth the value being discussed.
6. Insurance & warranty – Home insurance and a warranty is required by your lender, but you must obtain the insurance yourself. If your down payment is less than 10% of the price, you will likely also need mortgage insurance. Find out exactly what insurance and warranty your lender needs, then shop for quotes from multiple insurance agencies before you choose one.
7. Closing date – The closing date is determined in the sales contract and is the "deadline" by which the above must be done. However, you will need the title company present at the closing, so you should call well in advance to make sure they have an opening. The closing itself is easy, as the paperwork should already be done and there should be no surprises.
8. Utility transfer – You will want to either transfer utilities to your name or have them turned on if they were disconnected. In some states, there will be a list of utility transfer information in the Seller's Disclosure. If this isn't the case in your state, be sure to ask the seller for the info you need.
That's all it takes—the house is officially yours and you're ready to move in!