The Final Steps

Once your offer has been accepted, follow these final 10 steps to completing your property deal.

Step 1 - Acceptance

When all the parties to the contract agree to the price and all terms of the offer, the clock will start running to adhere to all the details that are outlined out in your offer.

Step 2 - Open Escrow

After all parties have agreed to all the terms of the contract, a copy of the contract and the earnest money must be delivered to the title company. This is an impartial third party that must remain neutral throughout the transaction. The title company will carry out all the instructions of your contract, provide the title insurance and provide documents to transfer the property.

Step 3 - Home Inspection

Before closing, it's important to have a thorough home inspection performed by a qualified and certified home inspector. This will protect you from flaws in the construction and condition of the home that are not obvious to the casual observer. Home inspections can uncover things such as foundation cracks, termite infestation and other home quality issues.

Step 4 - Appraisal

The appraisal is required by the lender to certify the property meets certain standards and to confirm the property's market value.

Step 5 - Home Owners Insurance

Before closing, you must obtain homeowners insurance. You will need to provide your insurance agent with the address, age and square footage of the property. Your insurance will not come into effect until the loan is closed and funded. The premium will be included in your closing costs and your monthly payments.

Step 6 - Final Walk-Thru

A day or two before you close your realtor will take you to your new home for a final walk-thru. This final walk-thru will allow you to make sure that the property is in approximately the same condition as it was when you agreed to purchase it. At this point, you can also inspect any repairs you requested as a result of the home inspection.

Step 7 - Closing

Closing is the date and time set-aside for you to come in and sign the paperwork and hand over the money for the down payment. The majority of closings are scheduled for the last day of the month; this large volume of closings can lead to mistakes and a rushing of the documents, and it is therefore a better idea to close earlier in the month if possible.

Step 8 - Funding

Funding occurs when all conditions have been met and all the loan documents have been signed at the title company. The signed papers are returned to the lender for review, who will then send the money to the title company to pay for your new home. Funding may occur on the day of the closing or on the next day.