Part 3 of our three-part guide to buying a home in Rehoboth Beach and the surrounding coastal communities.
You've found a home you like, made an offer and it's been accepted. That's a great feeling, but there are still a few important steps to take before the home is officially yours.
This part of the process can sometimes feel a little less exciting than looking at homes, simply because there's more paperwork and quite a few things happening behind the scenes.
The good news is that you won't be dealing with it all on your own. I'll keep you updated along the way, explain what's happening and make sure you know what comes next.
Your Offer Has Been Accepted - What Happens Next?
Once the seller accepts your offer, the purchase moves into the next stage.
There will be dates and deadlines to keep track of, documents to deal with and several people working on different parts of the transaction.
Exactly what happens will depend on the terms of your purchase agreement, whether you're financing the property and the home you're buying.
I'll keep an eye on things throughout the process, stay in touch with everyone involved and be there to answer any questions that come up.
Home Inspection
As we mentioned in Part 2, a home inspection is an important consideration when buying a property.
If your purchase agreement includes a home inspection, this will usually take place fairly early in the process.
The inspector will take a closer look at the home and its major systems and provide you with a report of their findings.
Don't be surprised if the report contains quite a few items. That's normal, particularly with an older home. What matters is understanding which issues need attention and what options you have under the terms of your agreement.
We'll go through the findings and talk about what happens next.
Financing and the Appraisal
If you're buying with a mortgage, your lender will continue working on your loan once you're under contract.
They may ask you for additional documents or updated financial information along the way, so it's a good idea to respond to any requests promptly.
Your lender will also normally arrange an appraisal of the property. This gives them an independent opinion of the home's value and helps confirm that the property supports the amount being borrowed.
It's worth remembering that an appraisal and a home inspection are two different things. The appraisal is mainly about the value of the property for the lender, while the inspection looks more closely at the condition of the home.
Title Work
There's also some important work going on behind the scenes to make sure the property can be transferred to you properly.
A title search checks the ownership history of the property and looks for anything that may need to be dealt with before closing, such as liens or other claims against it.
It's not something you need to become an expert in. The professionals handling your closing will take care of the details and let you know if there's anything you need to deal with.
What About Closing Costs?
As we touched on in Part 1, the purchase price isn't the only cost to keep in mind when you're buying a home.
Depending on the property and how you're financing it, your closing costs may include lender fees, title-related charges, insurance, taxes and other costs connected with the purchase.
There's no single figure that applies to everyone, so it's better to look at the actual costs for the home you're buying rather than relying on a general percentage.
Your lender and the professionals handling the closing will give you details of what you'll need to pay before closing day.
The Final Walkthrough
Shortly before closing, you'll usually have an opportunity to walk through the property again.
This isn't another home inspection. It's a chance to make sure the property is in the condition you expect, that any agreed arrangements have been followed and that nothing significant has changed since you last saw it.
It's also a good opportunity to take one last look around before the home becomes yours.
If something isn't as expected, we'll look at it before closing rather than leaving it until afterwards.
Closing Day
And then we get to the day you've been waiting for.
This is when the final documents are signed, the remaining funds are dealt with and ownership of the property is transferred to you.
There will be paperwork to work through, but you'll be guided through what needs to be signed and have the opportunity to ask questions along the way.
Once everything is completed and the transaction has officially closed, the home is yours.
A Few Ways to Keep Things Moving
There's quite a lot happening between an accepted offer and closing, but there are a few simple things you can do to help keep everything on track:
- Respond promptly when your lender or closing professional asks for information.
- Keep an eye on important dates and deadlines.
- Avoid making significant financial changes without speaking to your lender first.
- Ask questions if there's anything you don't understand.
- Make arrangements for insurance and utilities in plenty of time.
And if something unexpected does come up, don't panic. Most transactions have a question or two along the way. We'll look at what's happened and work out what needs to be done next.
And Finally, the Keys Are Yours
Buying a home is a big decision, and there's quite a lot that happens between first thinking about making a move and finally getting the keys.
That's why I wanted to put this three-part guide together – to give you a better idea of what to expect before you start looking, while you're searching for the right property and once your offer has been accepted.
Of course, no two home purchases are exactly the same.
If you're thinking about buying in Rehoboth Beach or one of the surrounding coastal communities, I'd be happy to talk through your plans, answer your questions and help you through the process from your first home search through to closing day.