So your offer has been accepted, congratulations! Now it's time to investigate the property further and make sure you're comfortable with the condition it's in. Once your offer is accepted, the clock starts ticking on the three contingencies: loan, appraisal, and inspection(see section on contingencies). As part of the inspection contingency, you must also verify that you will be able to obatain insurance on the home. If there have been any insurance claims on the property during the last five years, it could make it more difficult to get insurance. As mentioned before, the loan contingeny is in place to allow the buyer to make sure their financing is in place before they proceed. The appraisal contingency is simply to make sure that the property is worth at least as much as the loan amount. The inspection contingency allows for the buyer to have a period of time in which any and all types of inspections can be performed on the property(at the buyers' expense). This gives the buyer a way out if they are uncomforable with the condition of the home.
After removing all contingencies, the buyer is at risk of losing the initial deposit if they try to back out of the transaction. In most cases there is already a pest inspection report on the property. In some cases, there is a home inspection also available for the buyer to review. However this does not prevent the buyer from obtaining their own inspections as well. It is recommended that a buyer obtain a home inspection on the property if there is not one currently available. This is meant to outline the condition of the property and reveal any problems. The inspection should be performed by an insured, and experienced inspector.
Closing and Possesion
Before closing, you will have an opportunity to do a final walkthrough to make sure everything is how it was when you last saw it(or better). Your Realtor will make an appointment for you to sign your loan documents at the title company during the last week of escrow.Your Realtor should accompany you to this appointment so they can answer any questions that you might have about the paperwork. After the loan documents are signed, the last step is for the loan money to be wired to the title company. This is called "funding" and is the second to last step of the closing. The very last step of the closing is when the new deed is recorded at the county recorder, usually a day or two after funding , you are now the new owner! Your Realtor will arrange to give you the key to your new home. CONGRATULATIONS!