Five Things to Expect Once Your Offer Is AcceptedMarch 22, 2017
Everyone tells you the necessary steps to buy a home: check your credit score, determine a budget, save a down payment, and secure pre-approved lending with the best interest rates. But what happens once youâ€™ve found the perfect property and your offer has been accepted? How long will it be until youâ€™re setting out the welcome mat on your new front porch?
While youâ€™ve already begun mentally decorating or envisioning dinner parties with friends and family, the closing process is just getting started. It would be ideal if you could make an offer, learn it was accepted and pick up the keys within the same month, but thatâ€™s not always feasible.
Utilizing Re/Max Southern’s expertise, you can avoid unrealistic expectations and potentially costly mistakes by knowing what to expect:
- There Are A Lot of Moving Pieces and Paperwork
As the buyer, you need to know only two things: the house you want and whether you have the assets or lending to secure it. The bank, however, has to collect the appraisal, inspection report, proof of insurance, title, and other documents, some of which you will need to gather (the mortgage loan officer will provide you with a list). Each of these items is necessary before you can close and each one comes from a different source, making it crucial that all parties adhere to the lenderâ€™s suggested time-frame.
- Closing Costs Vary
Either the buyer or seller will incur closing costs, unless you agree to split them. For every home purchase these expenses vary, but itâ€™s best to be aware of the potential costs so you arenâ€™t surprised. The most prominent fees in closing costs include the lender application fee (which may include your credit report fee and appraisal; ask), escrow fees, courier costs, property taxes, insurance premiums, and fees for inspection, underwriting, surveying, recording and transferring the title.
- The Average Closing Takes 45 Days
Your realtor and mortgage loan officer know few things are as exciting, and stressful, as buying a new home. Theyâ€™re ready to get you settled into your new home as much as you are. That being said, the average closing takes 45 days (see number one), and more than likely, you can expect a modification or two to your original closing date.
- Close Near (But Not At) the End of the Month
So many homebuyers request an end-of-the-month closing, one, because their anxious to move in, and two, because they want to reduce accumulating interest. However, if something delays your closing dateâ€”a form is missing a signature or notary stamp, the MLOâ€™s computer crashes â€”then your closing is pushed to the next month and results in additional closing costs due to accruing interest for that month. A closing date near the end of the month provides a cushion in the event of a change, without risking a spike in closing costs.
- Youâ€™ll Need These Items At Closing
Itâ€™s wise to bring a binder of all the items youâ€™ve received throughout the home buying process, including any inspection reports, proof of homeowners insurance, and the good faith estimate. In addition, make sure you have your photo I.D. and checkbook. While Florida doesnâ€™t require a closing attorney, you are welcome to bring yours should you prefer. JustÂ be sure to update your attorney of any changes to the closing date and factor his/her fee into closing costs.
With Re/Max Southernâ€™s insider look at the closing process, you’ll be able to enjoy the home buying experience. Search our listings to find your future dream home or call an agent to schedule viewings today.