About Your Offer What's Next?
Once you have written an offer on your new home and it has been accepted, you can expect the following actions to take place.
The offer will be provided to your lender so that they may begin processing the transaction. The lender will take the following steps:
Verify that nothing has changed regarding your financial situation, and place the loan with an underwriter. The underwriter’s job is to insure that all is on the up and up, and that there are no surprises.
Order an appraisal; depending upon the type of loan, the lender may do this him or her self, or in the case of a VA loan, a VA appraiser must do the appraisal. This is done to insure that the lender does not influence the appraisal amount.
This is the time to consider locking your interest rate, if you believe that rates may go up.
Inspection: I will coordinate the inspection. We typically have 10 days to complete the inspection; with an additional 5 days should further inspections be needed.
Home Warranty: I will place a warranty on the home in time for it to become effective upon the closing date.
The Title Company: Your contract, along with your earnest money deposit, will be provided to the title company that will close the transaction. The title company will prepare a “title report” addressing the condition of the property title, liens, and any other issues that may impact your ownership of the property. The title company does not verify physical features such as fences and property lines.
The earnest money will be held in the title company trust account, and will be applied to the purchase price.
Underwriting and Closing: Once all verifications are done, and the appraisal is approved, the underwriter will prepare loan documents and forward them to the title company/escrow offer. The escrow officer then prepares a closing package, which includes the loan documents, deed to the property, tax documents etc.
Once all the documents are in order (usually within 24 hours of receipt), the buyer and seller will sign the documents that are applicable to each of them. The documents are sent back to the lender for final review, the money is transferred to escrow/the seller, and the title to the property is recorded at the county in your name. After the signing, you will not actually own the property for 4-24 hours.