Your offer has been accepted! Now what?
First off, congratulations! The most nerve-racking part of the homeowning process is complete! Now, in a typical 30-day escrow with a conventional loan, here is what to expect. *Please note, real estate transactions typically do not follow this timeline to a T; this is just a general outline.
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The Commitment Phase (Days 1-10)
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Day 1-3: Open escrow and deposit earnest money (EMD). You will send over your good faith deposit (usually 1-3% of the purchase price) to the escrow company.
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Day 1-5: Formally apply for the loan. You will now be required to submit a formal application with this property to your lender.
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Day 3-7: The home inspection. A home inspector will come in and do a thorough inspection to determine the home’s condition. This is the time to uncover any deal breakers.
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Day 7-10: Negotiation (request for repairs). If the physical inspector identifies any issues, a request for repairs will be sent to the seller. Another round of negotiations typically begins in the form of a price reduction or a closing cost credit for the identified repairs.
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The Confirmation Phase (Days 11-21)
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Day 10-14: The appraisal. The lender will send an appraiser to ensure the home is worth the price.
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Day 14-17: Title search and insurance. The title company will investigate the property history to ensure all taxes are paid and no one else holds a legal claim to it.
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Day 17-21: Contingency removal. Woohoo! Another huge milestone, time to remove the inspection, appraisal, and loan contingencies. Once all three of these are removed you are fully committed to the purchase of this property.
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The Completion Phase (Days 22-30)
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Day 25-27: Receive your closing disclosure (CD). By law, your lender will send this at least 3 days before you sign.
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Day 28-29: Final walk through. A final visit to the house to ensure all agreed upon repairs were completed, tenants have moved out, nothing has been broken or changed since offer acceptance, etc.
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Day 29-30: Signing and funding. You’ll meet with a notary to sign docs and wire the remaining down payment and closing costs.
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Day 30+: Recording and keys. The deed is recorded by the county and the agent will hand you the keys!
Tips for a smooth close:
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DO NOT open new credit! Buying a new car, opening a new credit card, or purchasing something large on your credit card can affect your DTI and credit score. This can affect your loan approval.
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Make sure to deliver your documents in a timely manner to the lender and real estate agent, a 30-day window makes the timeline tight. The quicker you get all your personal docs submitted, the more time your lender has to work with them.
