What to Expect/Do After Submitting an Offer

 Recently I was working with a client who wanted to submit an offer on a house.  As first-time homebuyers who both work in different industries I knew they’d be struggling with the number of things to do immediately upon acceptance of a contract and the pace of those events occurring so I penned the following to familiarize them  with what to expect.
Things To Do
  1. Call Mortgage Company and
    1. Lock your rate (if you have not done so already).  Rates change daily and apparently have been going up the last day or two; tomorrow may be different and they’ll go down but its anybody’s guess.
    2. Also, provide them with the Property Address and let them know when you plan to close on the property.
    3. Very Important!  Have them provide you with Estimated Closing Costs as soon as possible. Ask them to send me a copy so I can ‘be on the same page’.
  2. Call your Insurance Agent for a quote on the homeowners insurance.  You might consider the same company as provides your auto insurance.  Also, if you have time, get bids from one or two other companies for both your cars and your new house to be sure you’re getting the best deal.
  3. Decide on a Closing Date.  Typically we are writing contracts to close in 30 days or less so I’m assuming writing an offer today with a closing date of 30 days from now but you can choose an earlier or later date if that is what works for your family.
  4. $$ Down Payment.  Decide how much down payment you will be putting into the property.
  5. $$ Earnest Money.  Be prepared to write a check for the Earnest Money.  This money may be recoverable but certainly is at risk if you do not complete the contract or don’t buy the house.  I’ll let you know when you get close to a risky situation.  This check that you write becomes part of your Down Payment.
  6. $ Option Period.  I highly recommend an Option Period unless we are in a multiple-offer situation and I haven’t spoken with the Agent yet to know.  Since he hasn’t left me a message saying multiple offers, then probably not​.  You need to decide how many days for the Option and if you’ll have any inspections performed, and then write a check to the Sellers for $100.
  7. $ Home Inspection Company – There are many companies providing home inspection services; cost to the Buyer is anywhere from $295 – $500 depending on square footage and property attributes.  I’ll provide you a list of companies that you can select from. Please plan to attend if you opt to have an inspection performed.
  8. $ Appraisal / Fee- The Mortgage Company will contact an appraisal company and order the appraisal.  The Appraiser will contact the Seller and schedule time to go out and appraise the property.  You will write the check to the Appraiser, estimated to be $450 – $600. Sometimes this is credited back to you at Closing; I won’t know until I see the Lender’s Estimated Closing Costs.
  9. Residential Service Company – this is the ‘home warranty’ company.  There are quite a few out there and I can bring you some brochures​ from different ones so you can select one.  Most often the Seller pays for the first year and then subsequent years the Service Company will call and ask you to renew.  It is strictly your own personal decision to renew or not.
  10. Security / Alarm Company – I don’t recall if the house you are considering has a security system but if it does you have the option of continuing service or selecting a new company.  Some companies offer a rebate card of $100 if you go directly with them.  They call the Agent after closing and ask the Agent to contact the Buyer on their behalf.  It’s unethical for me to do that so if you want this information, please notify me as I will be telling them No when they call.
  11. $100 Charitable Contribution – This is my contribution to the Charity of your choice in your honor for purchasing a house with me.  You don’t write this check, I do, and it comes out of my commission on the sale.  Please let me know which charity you would prefer to receive the contribution.
  12. Housewarming Party – ​I offer a housewarming party after you move in or during your move-in process; just let me know the date and time and who to invite.
Once an offer is accepted by the Seller all the above actions go into motion fairly quickly and it’s helpful if you know what to expect.  The Mortgage Company will want all their paperwork completed within the first 7 – 10 days which is the same time you’ll be busy with home inspections and appraisals and getting insurance quotes.  It will be a busy time for sure.
This is most of what you’ll need to know for a smooth process; hope it helps.
Brenda Patton is a Texas-licensed real estate agent with Ebby Halliday REALTORS located at 1415 Legacy Dr, Suite 100, Frisco, TX 75034.  You can reach Realtor Brenda at the above address or by calling 469-408-3148 (voice/text) or use the contact form below.
If you have comments or would like to contact Realtor Brenda for additional information, the form below may be useful.
 

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