After the Contract

February 13, 2018

Now that you have negotiated and agreed on a purchase price with the seller, you usually have 30 or so days of work ahead of you before you get into your new home. The reality of purchasing a home can be an exciting and stressful time. There are a lot of tasks ahead of you, so get ready to dig in and do some work. One of the first things you will do is get a professional inspection. 

Get a Home Inspection

The costs will vary depending on where you live but count on about $300-$400 for the home inspection. Getting an inspection is vital for you and your peace of mind about the purchase you are making. It is also a robust negotiating tool that you can use as a buyer. If there are things uncovered about the house that you aren’t comfortable with, you can back out of the whole purchase, or request that the seller make some changes or repairs before the house sale is final. It is essential to look at the inspection money as an investment for you, no matter how new the house. 

Your Earnest Money

Now that you are under contract, you will have to put down some assurance that you are serious about the home. Earnest money is that assurance. This money is what you give up if you pull out of an offer at the last minute even when the buyer meets all the stipulations of the contract. The amount will depend on where you live, and what the deal stipulates, but is usually between 1- 3% of the value of the home. 

Disclosure Documents

The paperwork comes next. The disclosure documents will get you familiar with the area you will be living in. You should read these reports through thoroughly. You should refer to your agent or an attorney with any questions you have about the property, any easement issues, or permits on the property. Your agent should also help you understand any red flags that might arise in his perusal of the documents. 

Finding a lender

If you don’t already have a lender, this is the time to find one. It is best to look at lenders that your family, friends or co-workers recommend to you. Talk to your lender about interest rates and the myriad of loans that are available to you. Make sure they know your whole situation so they can give you the best possible advice about what loans to use. After an inspection, they will get the bank to do a property appraisal. The appraisal can take up to a week, and another it will take a week or so to get the results back to the bank. 

After getting all the results for the home and getting your finances in order, you can take the time to visit the home and property and getting familiar with the area. You will also want to plan out how to moveyour things to your new home. It is an exciting time and one that will go much smoother if you do your due diligence.