Did the seller just accept your offer to buy their home? There are 5 things that you as the buyer NEED to do right away: Just remember to S.M.I.L.E.!
These five letters stand for survey, mortgage lender, inspections, look into insurance, and earnest money.
S – The first step is survey. Do you know if you would like to have a survey done on the property? A survey will allow the title company to give you survey coverage which covers you in case of a boundary dispute. A survey will also allow you to add a fence to your property and show if anyone has encroached on your property or if there’s an easement. Instead of a survey some people settle for a surveyors real property report which isn’t good enough to get title coverage or build a fence but it does show the general layout of the property and you might learn of any encroachments or easements. Opting out of a survey altogether will save money upfront but there’s a strong chance of losing money in the long run if any sort of problem arises.
M – The second step is mortgage lender. If you haven’t been pre-approved by a lender already then choosing the right lender as soon as you can is very important. They are going to be your financial guidance throughout this process so picking one that can clearly answer all your questions day and night is key.
I – The third step is inspections. You typically have ten days for us per the contract to have the inspections completed, the reports returned to you, and to submit your request to the listing agent. There are many inspections available and we encourage you to get as many as you need to feel comfortable with the property. We strongly encourage you to be present for the inspection so that you can learn all there is to know about the home and any problems it may have.
L – The fourth step is look into insurance. Contact your insurance company and make sure that the property is insurable and you’re comfortable with the coverage. You have 10 days to complete this per the contract. This is very important in case the property is not insurable and you need to back out of the contract.
E – The fifth step is earnest money. Earnest money is the deposit made that represents your good faith to buy the property. Typically you need to mail your earnest money check to the title company within two days of contract acceptance.
Buying a home is one of the most exciting things you will ever do which is why it shouldn’t be all that hard remembering to smile, but if you do have any questions, just let us know; we will be there every step of the way.
Want to learn more about the homebuying process? Here is a link to our HOMEBUYING CHECKLIST