Are you buying a house in the Bay Area?
Let’s pick up where we left off!
Buying a home can be one of the most exciting adventures in your life and it can also be one of the most overwhelming if you try to do it alone. In this video I will talk about what happens after your offer gets accepted, home inspection, escrow and taking you to the finish line.
Even though your offer has been accepted, there are some very important steps that your Realtor will guide you through, all at no cost!
In Part 3 of this series, we will go through the next three tips.
7. Offer Accepted + In Contract
The bank will hire an appraiser (a third party) to make sure your house is worth what you’ve offered to pay. They will also work on getting final loan approval. During this time DO NOT go buy a new car, do not change jobs and do not leave your job. This all can have an impact on your ability to get a loan. You can do all of those things after you close on a house.
The seller usually gets a home inspection before putting the house on the market, so buyers know what they are buying. If the seller doesn’t have a home inspection available, then the buyer will get one. The inspector will look at the plumbing, electrical, attic, roof, appliances, etc., so you can understand the condition of the home. You can then determine if the findings are a deal breaker or not. If it’s not, then you will move forward with the home.
At this point you have a few options available regarding home condition:
- Asking the seller to repair the items before close of escrow,
- Ask the seller to reduce the price and you will handle the repairs OR
- You can back out of the contract and still get your earnest money deposit (EMD) if you have a home inspection contingency and have not exceeded the deadline.
Keep in mind that when buying a house in the Bay Area it is also common for buyers to buy the house as-is. It will be important for you to understand the condition of the home. If you back out, the seller will just go to the next buyer in line.
8. Closing Time
Once we are clear to close the buyer and the agent will do a final walk through of the house to make sure it is in the same condition as it was when you first wrote the offer. We want to make sure the stove didn’t grow legs and walk away or there’s a hole in the wall that wasn’t there before, and the sellers have truly moved out and did not leave a mess behind.
The lender will tell you the exact amount you need to bring to the closing. The escrow company will tell you how to get the funds to them: wire transfer or a cashier’s check. You will be signing a ton of paper. It’s almost like you’re signing your life away! (Just kidding.) Your hands will get tired from signing and your signature will start to change. That’s some of
the feedback I’ve gotten from my buyers. What you are signing is pretty much saying “I PROMISE TO REPAY THE LOAN. IF I DON’T REPAY THE LOAN THE BANK CAN FORECLOSE ON MY HOUSE.“
Once we hear back from the escrow company that we are on record, that is when you officially get the keys and the house is yours to move in at any time!
If you would like a comprehensive guide that summarizes the Buying a House in The Bay Area series, download my FREE first-time Home Buyer Guide.
Make sure to find a great agent because this person is your advocate throughout the whole entire process. Find someone who knows what they are doing and can explain these things to you and make you feel comfortable, so you are not stressed out or lost during the process. Find a great lender who will do a good job for you. Who your agent and lender are will make a big difference in your home buying journey. At the end of the day you want someone who always has your best interests at heart. You want this experience to be memorable, because it should be.
Buying a home in the Bay Area is the best investment you can make. There is no other place in the country that is like the Bay Area. With the limited housing inventory, tech companies and booming economy, homes here appreciate like crazy! I helped a seller a few years ago and they lived in their home for only 4 years and when we sold their house they made about $500,000. I was looking at another seller’s home a few weeks ago and they bought their house 5 years ago and as of today 5/2020 they already made $700k on their house!
You will always have to live somewhere. Why rent and pay your landlord’s mortgage? There are so many benefits to homeownership. If you are thinking about buying a house in the Bay Area don’t hesitate to reach out to me. I’ll be more than happy to help you in any way I can.