My Offer was accepted, now what?

Now that you have an accepted offer to purchase a property in Milwaukee, Racine, Waukesha, or surrounding areas, there are a couple steps that have to be taken to get the keys at closing!

Most of those steps are called contingencies. Contingencies are basically terms that would have to be met in order for you to agree to purchase the property.

Earnest Money

The earnest money is money paid to confirm the contract. It is given upfront to confirm you are serious about pursuing the purchase of the property. Normally it ranges from 1% to 3% of the purchase price. The earnest money can be given in form of a check or money order to your NextHome REALTOR® or you can deliver to the listing office. Confirm with your NextHome REALTOR® first. Sometimes the instructions are different.

Meet with Lender

In order to have a formal mortgage application your mortgage loan originator needs an address. It is best to give your purchase contract and lead based paint disclosure so that the lender has everything they need to start. He/She will probably ask you again for updated paystubs and bank statement. Be patient!

Inspections and Testings

If an inspection or testing contingency was included. A licensed home inspector must be hired to perform a home inspection. In most cases this contingency have an expiration date. It is best to try to have enough time between the actual inspection and the deadline to allow time for negotiations if any.

Appraisal

An appraiser is a third party that is hired by the bank to determine the value of the property. Depending on your loan type; the appraiser also make sure the property meets HUD’s minimal safety and hazard requirements.

Financial Contingency

The loan commitment letter from your bank is what is needed to confirm your financing to the seller / listing agent. Have in mind you must authorize in writing the delivery of this letter to the seller’s agent. It is suggested to have the loan commitment deadline as close to closing as possible.

In-between the above other important things are happening not to mention if your offer included more terms. Talk to your NextHome REALTOR® if you have any questions!