You’re Not Done Yet!
There is still a grocery list of items to take care of and prepare for. “The buck doesn’t stop here” so make sure you know what else is coming at you!
You have an accepted offer! But it’s still conditional. Meaning you have included certain items in your Agreement of Purchase and Sale that will protect you before you call it a done deal. Perhaps you have a Financing Condition or a Home Inspection Condition, maybe it’s a condition regarding your ability to get Insurance on the house.
If you have an excellent, savvy Real Estate Sales Person and Mortgage Representative in your arsenal of professionals helping you through the whole buying process then they will ensure you are ready to tackle the following.
Financing Condition - Usually the first item on the agenda to get rolling. You should have a pre-approval in place, discuss what this entails with your Real Estate or Mortgage Professionals. The final parts of the Financing Approval will be more in depth and require things like past tax return information, employment letters, and a whole myriad of paperwork to prove where you are on your finances. It will tell a lender that you not only earn enough money to maintain prompt payment on the mortgage but that your payment history makes you trustworthy to make future payments and that you have not accumulated so much debt that you might get yourself in trouble paying for your mortgage, car, etc on an ongoing basis.
Home Inspection Condition - The next order of business once you have your financing in a position where you have been told things look good and perhaps they’re waiting for manager signatures. Once you have a good feel for your financing then do your home inspection. Inspections can tell you a whole story about your new home. They can save you a lot of grief and money too if unexpected items are found. Inspections cost $400-$500 or more. If you need a septic or WETT inspection you’re looking at a couple to a few hundred dollars more, but don’t skimp on this cost. If you are buying a country property and the septic system is 30 years old an inspection will tell you that and it will tell you if the system is failing. Septic systems run $30,000 plus so skimping the inspection to save $250 vs a $30,000 system is just silly. Your Real Estate Salesperson, if they are connected in the industry and the community, will be able to refer you to an outstanding, honest easy to talk to Inspector with all the proper credentials. Use the 3 or so hours you will be with that person and ask any and all questions. This is the best time to get to know the overall workings of your home, where shut offs are, where safety items are, how to manage emergencies through the systems in place. Learn the age of the furnace if you don’t know or other items like the water softener and hot water heater (note: many water heaters are rentals so make sure you know what that means to you).
Lawyer! Yes you will need a Lawyer to finalize the legal side of your purchase. Again if your Real Estate professional is connected they can refer you to a reputable Lawyer who will ensure you are taking free and clear title of your home. There are no ownership issues, registered complaints, encroachments or other things you may not be aware of or prepared to deal with in your future home. I could write several blogs on the lawyer’s role but what you need to do is ensure you are working with the right professional and they will ensure you are properly educated, protected and prepared.
To Be Continued - I’ve only covered the very basics of the average home purchase here. There are other items you may need to consider while you firm up your purchase. All the best in your purchase and wishing you a smooth and exciting closing day!