Offer Accepted, Now What?

Important FAQs

If I'm not satisfied with the inspection results, can I re-negotiate?

Yes!

However:

Changing the offer may nullify the 1st offer (depends on state & terms of the contract)
This means that the Seller could accept another offer rather than agree to your new terms
Review your Purchase Agreement to see if this applies to your situation

What repairs can I include in my re-negotiation?

Technically, you can ask for anything.
However, there are many repair requests the seller will probably not agree to.

Requesting any of the following repairs is almost always considered reasonable:

Termite or carpenter ant infestation
Electrical issues
Old pipe fittings
Active water leaks
Heating ventilation problems
Radon readings over 4.0 pc/l.
Mold
Asbestos

I've submitted my documents, what am I waiting for?

Once they've received all documents, your lender will begin the Underwriting process.

Underwriting will include some or all of the following:

Financial analysis of the buyer (credit check, debt-to-income ratio, etc)
Drive-By-Appraisal or Full-Appraisal of the property
Title analysis & report

News / Articles

Home inspections & your peace of mind You'll probably find some issues during the home inspection... What will the seller fix? Did the seller have an inspection done beforehand? Stress and the underwriting process.. Government Trying to Legislate Strict Underwriting HOW... How to Estimate Home Inspection Cost How does a Home Inspection Work? How to Interpret Home Inspection Reports How to Understand a Mortgage Underwriter How to Write Letters of Explanation to a Mortgage Underwriter How to Escrow Property Tax How Does Homeowners Insurance Work? How to Compare Homeowners Insurance How to Compare Home Insurance Quotes How to Determine if You Should Have Flood Insurance

Underwriting Guidelines for the Average Mortgage Mortgage Approvals Being Delayed Getting the best rates on homeowner insurance policies Will you really own your home after closing?

Countdown to Closing

To begin your timeline, input the information below and click "Countdown to Closing".

Countdown To Closing

Have the Home Inspected

Schedule the Home Inspection at a time when you can be present:

To provide the inspector access to your home
To ensure a face-to-face discussion of their results

To find a state licensed home inspector, go to one of the websites below:

ASHI
InterNACHI
NAHI

* Remember to save the home inspector's contact information using Quick Tools

If you built your contract with LawDepot.com, you should have an Inspection Contingency Period.

This gives you limited time to:

Find a home inspector
Have the home inspected
Review the Inspection Report
Decide if you would like to accept, negotiate, or decline contract

Your inspection contingency period is counting down, so hurry!

Inspection Contingency Period ends:

Inspection Complete: Continue, Re-Negotiate, or Terminate

You've received the results of the inspection, choose one of the following options:

Continue

You've chosen to accept the home in its current condition!

Continue below to the step "Submit Documents to the Closing/Settlement Agent"

---or---

Re-Negotiate

You've found some defects and would like to re-negotiate your offer.

Continue to the step below to re-negotiate.

---or---

Terminate the Agreement

If you've decided to discontinue the purchase, it's important to officially terminate the contract.

To terminate the contract during the contingency period, submit this form to the seller:

Termination Form

Once you've opted-out, return to block 3) Find a Home to continue your home search:

Re-Negotiate to Resolve Defects Found During the Inspection

If the inspection uncovered defects, you can re-negotiate the terms of the Purchase Agreement.
Since the Purchase Agreement has already been signed, you will use a Contract Amendment

Remember: Your new offer could nullify the 1st offer (consult your Purchase Agreement and/or discuss this with the seller before submitting the amendment)

If you've decided to re-negotiate, you will have two main options:

Request that the seller pay for all or part of the repairs
Request that the seller lower his or her asking price

Remember to include the following (if applicable) in section (3) of the amendment:

New sales price
New Closing/Settlement date
Inspection Contingency Period for re-inspection of repairs
Any other dates that have changed
All required repairs
Who will pay for the repairs

Download & complete your Contract Amendment here:

Contract Amendment

Submit Documents to the Closing/Settlement Agent

Normally, the Closing/Settlement Agent will require the following documents:

Purchase Agreement
Earnest Money Check

Contact the Closing/Settlement Agent below to verify:

Which documents they require from you
How they would like you to submit the documents
Will they send a courier to pick them up from you upon request

My Closing/Settlement Agent:

Submit Documents to Your Lender

Normally, the lender will require the following documents:

Purchase Agreement

Contact the lender below to verify:

Which documents they require from you
How they would like you to submit the documents

My Lender:

Decide if You Want to Escrow (Taxes & Insurance)

Some Lenders will require you to be on Escrow, others will allow you to decide for yourself

If you escrow:

You'll make 1 payment (usually monthly or bi-weekly) into your Escrow Account.
This payment will be made to your lender as part of your mortgage payment.
The lender will pay your taxes & insurance for you out of your escrow account.

If you DO NOT escrow:

You will normally pay:

Mortgage Payment to your lender monthly
Property Taxes to your county tax office yearly
Homeowner's Insurance to your insurance company yearly or as specified
PMI (if required) to your lender as required
MIP (if required) to your lender as required

Advantages to using Escrow:

Lender assumes responsibility for paying your property taxes and homeowners insurance
Don't have to worry about paying taxes & insurance separate from your mortgage payment
No large yearly tax or insurance bill

Disadvantages to using Escrow:

Lender keeps the interest on your account in most states
Some lenders will raise your interest rate or charge a penalty fee if you do not escrow

Before your Closing/Settlement date, notify these people whether or not you'll be on escrow:

Closing/Settlement Agent
Your Lender

Get Title Insurance

Your Lender will require Lenders Title Insurance.
You may also want to purchase an Owners Title Insurance policy.

Who pays for the Title Insurance?

This is negotiable and should already be addressed in your Purchase Agreement.
The seller generally pays for an Owners Title Policy
The buyer generally pays for the Lender's Title Policy

Where do I get Title Insurance?

A Title Company can provide you with Title Insurance.
If your Closing/Settlement Agent is a Title company, you can purchase from them.

My Closing/Settlement Agent:

Get Homeowner's Insurance

For help thoroughly comparing Homeowner's Insurance plans, click here:

Compare HOI

To receive & compare Homeowner's Insurance quotes, click here:

HomeInsurance.com

Determine if Flood Insurance is Required

If you are in a flood zone, your Lender will probably require you to have Flood Insurance.
Even if you are not required to have flood insurance, it is a good idea to purchase it.
Normally, you can request that flood insurance be added to your Homeowner's Insurance policy.

To find out if you are in a flood zone, go here:

FEMA

To find out more information about flood insurance, go here:

Flood Smart

Offer Accepted