Your offer has been accepted! Now what?

Has your home offer recently been accepted? Congratulations! This is a major milestone, and it brings you one step closer to officially owning your own property. Before you can officially seal the deal, though, there are some final steps you need to take. While finding the right home and budget was the biggest part of the battle, there are still some loose ends to wrap up. Here are your next moves once your offer has been accepted.

Pay your deposit

Your first step after your offer is accepted is paying your deposit. This is a small percentage of the home’s purchase price, and it is taken from your down payment. For example, if you have a down payment of 20 per cent, your deposit might be two per cent. Deposits are usually due within a couple of days after an offer is accepted. This is meant to give reassurance to the seller and prove you are invested and serious about the purchase. 

Your deposit is applied toward the price of the home, and as we mentioned, it is part of your down payment. This means you do not have to pay a down payment AND a deposit, as your deposit is packaged into your down payment. The key thing to know about your deposit is the importance of paying it on time, so you don’t risk missing out on the sale!

Secure your mortgage financing

Odds are you secured a mortgage pre-approval near the beginning of your house hunting journey. However, now it’s time to actually apply for the mortgage! As you know, your pre-approval was an estimate on how much you might qualify for in mortgage financing. This was meant to give you an idea of what you could afford, how you should budget, and whether you should make any changes. It also gives your potential lender the chance to get to know your situation and learn basic information about you. While it is not a guarantee of a mortgage, a pre-approval is very useful for borrowers. 

Now, you need to apply for your real mortgage. If you want to use the same lender who you worked with when you got your pre-approval, they will already have a lot of your information on hand. This will help the process move a bit faster. However, you are not obligated to use this lender! You and your mortgage broker should work together to determine what the best option is for you. Until you secure your mortgage financing, you cannot close on the sale of your new home. This means your mortgage approval is perhaps the biggest part of completing the buying process. Be sure to work closely with your broker for guidance!

Work through any conditions

Most purchase agreements have conditions in place that must be met before the sale can be finalized. As the buyer, you likely included certain conditions that you should now start working through. For example, as we touched on above, you may need to ensure you have secured mortgage financing before the deal can close. This protects you in case you are unable to lock into a mortgage for any reason, so you can back out of the sale without major penalty. 

You should have also included a clause that indicates the home must pass an inspection before the sale closes. A home inspection will uncover any health and safety issues, or any major repairs needed. If discovered, you can work with the seller to find a fair way to pay for any of these costs. Failure to include an inspection clause leaves you as the sole person responsible for paying for any repairs after the sale closes. 

Complete an appraisal

Most lenders require a home appraisal before they will provide mortgage financing. An appraisal determines the property’s value, which tells the lender how much it is worth in terms of mortgage financing. The appraisal depends on things like the home’s location, condition, and how it compares to other houses in the same area. If the appraisal matches your offer, your lender is likely to approve your mortgage application. However, if it falls short, this means your offer is higher than the property is truly worth. In this case, your lender may not be willing to finance your entire mortgage amount. This is why it’s important to provide a clause in your offer that details this scenario, as discussed above. You don’t want to be on the hook for a mortgage you cannot afford! 

In many cases, buyers can still complete a home purchase with a lower appraisal amount, but it means they will need to cover the costs that a mortgage won’t. This can be a challenge for people, so be sure to work with your real estate agent to ensure your offer is competitive and accurate. This will help the odds of your offer price staying in line with the appraisal value. 

Perform a last walk through before closing

As the buyer, you will have the opportunity to complete a final walk through of the home before it closes. This gives you the chance to tour the home one last time and make sure it looks the same as it did when you made your offer. For example, there shouldn’t be any major damage that was not present when your offer was accepted, or any structural changes to the home. If you discover these issues, you have time to negotiate with the seller to discuss how to move forward. Ideally, you will complete this walk through in the final days leading up to the closing date. 

Celebrate!

Finally, take a moment to celebrate! You have worked hard to get to this point, and you deserve to enjoy the results of your time and effort. You are almost done with the process, and just have a few hurdles left to clear. Along with the tasks above, make sure you also meet with your lawyer to ensure you have everything signed and set up for closing day. On the day itself, bring two pieces of government ID to help the process run more smoothly. 

Once your offer is accepted, this means you are one step closer to owning your dream home. Don’t take your foot off the gas just yet, though! Stay focused on the remaining tasks you need to complete, and lean on professionals to help you out. You can always reach out to your mortgage broker for an extra hand as you move through the final steps of this process. 

If you have any questions about your mortgage, give us a call at Centum Home Lenders! You can reach us at 506-854-6847, or get in touch with us here.