If you`re reading this article, chances are you are currently under contract for a house – congratulations! However, as exciting as this step in the home buying process is, it`s important to understand that there are still a few steps left to go before you can truly call the property yours. Here`s what you need to know about what to do after you`ve signed a contract for a home.
1. Get a Home Inspection
One of the first things you should do after signing a contract for a home is schedule a home inspection. This is your chance to make sure there are no major issues with the property that could cause you headaches down the road. A licensed inspector will take a thorough look at the home`s structure, systems, and appliances to ensure they are all in good working order.
If the inspector does find any issues, you can request that the seller make repairs or negotiate a credit toward the cost of fixing them. If the issues are major, you may even have the option to back out of the contract altogether.
2. Secure Financing
Once you are under contract on a home, it`s important to finalize your financing. If you haven`t already, start shopping around for a mortgage lender and lock in your interest rate. You will need to provide your lender with all the necessary documentation, such as tax returns, pay stubs, and bank statements, to prove your income and creditworthiness.
Your lender will also order an appraisal of the property to ensure it is worth the amount of money you are borrowing. Once your financing is in order, your lender will send you a loan estimate and closing disclosure outlining the terms and costs of your mortgage.
3. Complete Closing Tasks
The final step in buying a home is the closing, where you will complete all the paperwork and officially take ownership. Before the closing, there are a few tasks you will need to complete.
First, you will need to purchase homeowners insurance and provide proof of coverage to your lender. You will also need to transfer utilities and services into your name for the day of closing. Finally, you will need to review and sign all the necessary documents, including the settlement statement, which outlines all the costs associated with the purchase.
Closing day is an exciting day, but it can also be stressful. Make sure you understand all the terms of the transaction and ask questions if anything is unclear.
In summary, being under contract for a house is a big milestone, but it`s important to stay focused on the steps that come next. Schedule a home inspection, finalize your financing, and complete closing tasks to ensure a smooth transaction. With a little bit of preparation, you`ll be ready to move into your new home in no time.