Considerations After your Offer is Accepted
Once your offer is accepted, there are a few final hurdles to clear before you can call the house a home:
Lenders will often want an appraisal of the home they are writing the loan for. The home is the collateral for the loan so they do not want to loan $500,000 for a home that is only worth $400,000. If the buyer ends up defaulting on a loan they will be stuck with a home that is not worth the money they put up for it.
Also, unless you are assuming the seller’s homeowner insurance policy you will need to find an insurance policy as well. In the bay area, you may want to make sure you have included disaster insurance to protect your home against earthquake damage.
Once in escrow, the escrow agent will sort out the agreement and prepare a closing statement, which details the funds that need to be paid, and which party will be paying them.
The seller owes the cost of utilities up until the day that escrow closes. At closing the escrow company will also inform you to bring a cashier’s check for the closing costs.
You may also want to get a home warranty plan; this warranty covers the costs of repair should any of the included appliances in the home, such as the refrigerator, should break down after you purchase your new home.
You now know the steps and what it takes to purchase your first home. Though the process can be very confusing and stressful, with determination, a little research and the help of a good agent it can be done!
If you have any further questions or would like an agent to assist you in the process. Feel free to contact me by email at dratoosh@gmail.com or give me a call on my cell phone at 510.919.5499
Special thanks to www.forsalebyowner.com
