Well, I'm in contract to buy a home....what happens next?
Welcome to escrow! Expect to be very busy over the next two weeks. This is the process where your lender will being working on your loan, you will have your home inspected by a professional, and there will be lots of paperwork to review.
The typical escrow is 30 days. Generally the first 10-14 days are very busy, with the rest of the time being a bit calmer which will free up time for packing and planning.
You can expect to feel very emotional:
This is very normal, so share your feelings with your friends, family members and your Realtor. Don't ball it up and overly stress yourself out. Sharing your feelings and emotions will help you deal with this very stressful time.
Now let's discuss the 5 biggest moments after you are in contract on a home.
The home inspection: This is a very big moment and should be done right away. The average inspection costs $300-$500, and is paid at the time of the inspection by the buyer. Expect that there will be at least 10-15 items found, which is perfectly normal. What you do not want is major issues such as foundation, roof leaks, termites, heating & air issues, etc.
Disclosures: There will be lots of paperwork to review. The sellers will be required to disclose defects, deaths, updates, remodeling, insurance claims, neighborhood issues and other issues that need to be reported. There is also documents coming from the city and county that will be reviewed and signed.
Contingencies: These are deadlines in your contract. There are deadlines for inspections, disclosure, appraisal, loan and others. Make sure you clearly understand these deadlines or else your deposit could be in jeopardy.
The net sheet: Prior to closing escrow you will be provided with a net sheet from the title company. This can often be called a closing statement. This will have a total calculation break down for all fees and costs. Make sure you carefully review this document, and that your Realtor has also reviewed it prior to signing your final loan documents.
Closing: Once your loan documents are at title it will be time to close. In California you will either go to the title office or they will send a notary to you at an additional cost. We will have approved the net sheet and you will either bring a certified check or wire for your final closing amount. These documents will be sent back to the lender for final review. Once approved your loan will fund. This is usually 1-2 days after you sign. Either the day of the funding or the following day the property will record. Recording usually happens first thing in the morning or late in the afternoon. Once the property has recorded you are officially a home owner!
ABOUT THE AUTHORS: THIS ARTICLE "5 Big moments after you are in escrow to buy a home" WAS PROVIDED BY GLENN TOMPKINS. A REALTOR IN THE SACRAMENTO AREA. MY TEAM OFFERS OVER 30 YEARS OF COMBINED EXPERIENCE, SO IF YOU’RE THINKING OF SELLING OR BUYING, I’D LOVE TO SHARE OUR KNOWLEDGE AND EXPERTISE.
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