What Happens Once My Offer is Accepted?

A buyer recently posted on Facebook, "wish me luck, I just bought a house!" Had we just returned from the settlement table? Nope, we were one of FOUR people that wrote an offer on a foreclosure. Sadly we did not get the home. In football terms writing a contract would be the equivalent of the end of the first quarter. As Dallas Cowboy fans can sadly tell you, there are four quarters in a game. Let's look at what happens after the offer is accepted.

1) The home inspection-- In Louisiana we negotiate an inspection period. Normally buyers agents request between 10-15 days. Nothing else happens before this. That way, if the buyers want to back out no other money has been spent.

2a) Title Work-- It is important that title work start as soon as the inspections are complete. Problems with the title can spell a significant delay to closing. I have had buyers back out of a deal when confronted with a lengthy title delay.

2b) Appraisal/Loan Processing-- The appraiser is hired by the lender (paid for by the buyer) to ensure the home is worth the money being loaned. Depending on the type of loan/toughness of the appraiser the condition of the home may be examined. THIS SHOULD NOT REPLACE A HOME INSPECTION. I have seen appraisers on FHA and Rural Development loans overlook MAJOR issues. It all depends on which appraiser is selected for the assignment. At the same time the bank will process the loan application. DON"T MAKE ANY MAJOR PURCHASES UNTIL THE HOME CLOSES. Trust me on this.

3) Septic/Termite Inspection-- If the home has a septic system (not on city sewer) the health department will inspect the system and issue a certificate. At the same time a pest company will conduct a "Wood Destroying Insect" inspection. Due to the language in the purchase contract, I have my clients do the pest inspection during the home inspection (step one).

4) Final Walk-Thru-- The buyers make one final visit in the days leading up to closing. THIS IS NOT ANOTHER INSPECTION PERIOD. Simply put, you are making sure the home is in the same condition as when the offer was written. This is not the time to try to strong-arm the sellers into making more repairs/upgrades.

5) CLOSING-- Closing in Louisiana typically occurs at an Attoriney's office. Usually the day before settlement each side will learn how funds will be distributed. This helps limit "surprises" at the closing table. If you need to bring more than 500 bucks most attorneys require certified funds. Any invoices for repairs are provided by the sellers and keys are exchanged. Make sure your driver's license has not expired. This can kill a closing at the table.

After the closing... Simply make 360 monthly payments and you will be a home owner!