Your offer was accepted but there’s a few weeks before you head to the Closing Table and get your keys. What happens now?
Once your offer has been accepted, you’ll enter into what real estate agents refer to as escrow.
In escrow, a couple things will happen.
1️⃣ You’ll likely make an “earnest money deposit.” This shows the sellers that you’re serious about buying the property. If you back out of the transaction, you may lose your EMD. However, depending on your contract, you may be able to get your EMD back in certain situations.
2️⃣ The house will be appraised by a licensed, third-party appraiser. This makes sure that the lender isn’t “overpaying” for the house. If the house appraises below the sale price, you may have to pay the difference.
3️⃣ The home will go through a home inspection. This is an examination of the physical structure and systems of the house to determine their condition and safety. After all, you deserve to know EXACTLY what you’re buying. Depending on the inspection report results, you can either proceed with the sale or back out.
Based upon the appraisal and the inspection report, there may be some more negotiating of the sale price and terms and conditions.
During escrow, you’ll want to make sure you don’t make any big financial purchases (like buying a car) that could impact your ability to get a mortgage.
If escrow feels a little overwhelming, don’t worry! I’m here to guide you through the entire process.
Plus, the Closing Table is right around the corner…