Your Offer Was Accepted - Next Steps In Your Home Purchase

Note: Most items are informative in nature, however, items in bold with asterisk* require your action.

Kathleen calls and tells you that your contract is accepted. Congratulations! (This would be about 24 to 48 hours from the time you turn your contract in.)  Remember: your earnest money check will be cashed at this time.

 1.       Our offer was accepted now what?

  *Call your lender and get all paperwork turned in. If using your VA eligibility, make sure to ask your lender if they are ordering it, or if you need to.

Within a week of contract acceptance, you will receive a letter from our office regarding homeowners insurance and utilities. A list of utility companies that offer services for your home is included with this letter.

 2.       What do we do about homeowners insurance on our new home?

*Order homeowners insurance.Remember to have your insurance company fax your quote to your lender. (Do not pay them any money.) Details that the insurance company will need for the quote is found on the MLS sheet for your new home. Some questions your insurance agent may ask are: year built, square footage, and how much you paid for the home.

 3.       What do we do about getting the utilities put in our name?

*Have utilities put in your name.You may use the list of utility companies that our office provided to arrange for your utilities to be changed over to your name. Make sure that it's set up for the day of closing. Many clients have found that asking the utility company to have the service put in their name as soon as the seller turns it off works best. (If service lapses, you could be subject to a reconnection fee.)

 4.       What can we expect Kathleen and the office to be doing now?

Kathleen orders your title insurance, appraisal, termite inspection, and home inspection. These items take about 5 days to get in order. (You probably won't hear much from us the first four days as we will be busy filling out all the necessary paperwork and order forms.) Once we have completed this portion you will get an update.

Kathleen's office calls you with the date and time of your home and termite inspections.

If the repair estimate from your inspection is lower than the negotiated amount, we will have you sign a repair addendum and all repairs will be accomplished. (This is also true if the repair estimate is close... within $150 over the negotiated amount.) If repair estimates are higher than this or you have concerns, we will call you and discuss options.

My office communicates with the seller's agent on the progress of repair work and we will give you copies of receipts at closing to document that repairs were made. We typically give you a phone call updating you on the repair situation and how they are progressing.

My office will touch base with you a minimum of once a week, just to see how you are doing and to give you updates on things like inspections, repairs, appraisals, and termite inspections. If we do not reach you personally, we will always leave a message. Please call our office with any questions that you might have. We want you to feel completely comfortable about your purchase.

About a week (or more) before closing, we will give you a map of where closing will take place and at what time. We try to give you this information as soon as we have it. Look for the map to arrive in the mail or sent to your email account. If, 7 days prior to closing, you have not received your closing appointment time and map, please call our office at (405)-330-1859.

*Reminder: did you set up the utilities to switch over to your name on the day of closing? You may be subject to a reconnection fee if there is a lapse in service on the home.

 5.       What happens during the home inspection?

Many buyers have questions about their home inspection. Here are some of the most frequently asked questions and answers. 

·     What is a home inspection? A home inspection is done to find mechanical and physical problems with a property and to protect you, as a buyer.

·     Will they address everything we find wrong, like paint chips or scratches in baseboards? Since you are purchasing a pre-existing home, there will be obvious cosmetic flaws you will elect to change after you own the property. The home inspection is not done to address these. It’s to ensure the property is in sound condition, from the electrical and plumbing systems to the roof and structure.

·     Will we be able to address items at a later date? All concerns you have must be addressed with your inspector at the time of the inspection. I cannot negotiate items that are not on his summary sheet.

·     Who pays for the inspection? You are paying for this inspection. Even if the seller is paying your closing costs, it’s still coming out of the negotiated total cost of the home (the cost of the house, closing costs, and prepaids). As part of your negotiated costs in the contract, the seller will pay this cost at closing out of their proceeds. Since it is your cost, the inspector works for you. Feel free to ask him about any concerns or how to operate systems in your home.

·     How much does it cost? The fee for the inspection will be between $225 and $300, depending on the size of your home. If you elect to pay at the time of inspection, you will save about $20. If we have negotiated your closing costs be paid by seller, you can choose to have this cost to be paid at closing.

·     Is this the only inspection we will need to do? For your convenience, we will have your termite inspection done at the same time. This fee is $100. If you pay at the time of the inspection, you will save $10. Again, if we have negotiated costs for you, we are happy to send in the bill to be paid at closing. If you decide to pay for your inspections at the time, you will need two separate checks, one for each of the inspectors.

·     Who will be present at the inspections? You and the inspector will of course be there. We will also have a representative at the inspections. My staff or I will sit in a separate room, doing other tasks or paperwork, so as to not disrupt your time with the inspectors. Our purpose is to be present in the event there is some unexpected problem we need to address immediately.

·     What if I can’t make it to the inspection? If you are unavailable for the inspections, we will take an active role in the inspection on your behalf.

·     Will the seller be there? We ask the seller not to be there, but many want to be present so they can address the findings and recommendations with the inspector. Again, we request they not be present, but we cannot force them to leave and sometimes it is beneficial for you to ask the prior owner questions about the property and neighborhood. Our main objective, however, is to ensure you are not sidetracked or interrupted during your time to learn more about your new home.

·     How long will it take? This process will take approximately 2 hours. After it is completed, the inspector will ask you and us to join him for the summary. This is where the inspectors will review their findings in full. Please feel free to ask any questions or have them clarify anything where you feel uncertain.

·     How much do the repairs usually cost? The total amount of repairs is usually related to the age of the home, but not always. Please do not panic when you see the total. The inspector’s bids are generally several hundred dollars high because they have to give conservative estimates for a licensed professional to do the repairs. I will review the summary and get back to you the next day regarding your thoughts and proposed negotiated items.

·     What happens once we determine the repairs needed on the property? I will then prepare a Treatment, Repair, and Replacements (TRR) form. This will list the items we choose to have them fix or replace prior to closing on the property. If you feel comfortable signing the form at the inspection, we will fill in all the items we are going to negotiate for them to fix. If you decide not to sign it at the time, I will fill it out and get it back to you for signature later (you will need access to a scanner or fax machine to get it back to us in a timely manner). I will then negotiate the repairs and request proof of repair be provided before our final walk through. We can then ensure they did the repairs to your satisfaction. Most elect to sign the TRR at the inspection. If I am not personally at the inspections, I will fill it out and email you a copy of our request. Whichever you choose is fine—we want to make this process as easy on you as possible. Remember, this process is to protect you, as a home buyer. If you have any questions or concerns, please feel free to contact the office at 330-1859 or send an email to forrestteam@yahoo.com.

 6.       How much money do we need to bring to closing?

Final figures: We do not know how much you will get back or how much you need to bring to closing until the DAY BEFORE closing. (They do not get these figures to us any sooner than that despite repeated requests.) Please call your lender if any questions related to this. As soon as we get your figures we do call you with the amount, but again, your lender typically has this information available a day before we do.

7.       What do we need to bring to closing?

*Closing:Please bring photo identification (driver’s license, etc) If bringing money to closing, you will need a certified check or money order made out to the closing company.

*Action required by you.