Learn what you can expect during the inspection and closing process when buying your new home.
You found the perfect home, applied for a mortgage, and now you’re making an offer. Congratulations! But what happens during the rest of the homebuying process?
Why do I need this?
Home inspections usually aren’t required by the lender to get the loan, but are strongly recommended. An inspector will go through the home and look for problems, evaluating to determine whether the home is safe for move-in, and worth the price you’re paying.
Who do I hire as the inspector and who pays for it?
You can hire an independent inspector or ask your real estate agent for recommendations. When hiring one without a referral, look for someone who is affiliated with the American Society of Home Inspectors or the National Association of Home Inspectors.
You’ll be responsible for the cost of inspection and asking the seller for repairs. While you’ll spend a couple hundred dollars depending on the size of the home and add-ons, it’ll be worth it in the long run if the inspector finds anything major worth repairing.
When do I get the inspection done?
You’ll want to get the inspection done during your option period. This is an agreed upon period of time, after you and the seller have signed the contracts, during which you can terminate the contract for any reason without risking your earnest money. It typically lasts between 7–10 days, but it can be any length of time you and the seller have agreed on.
What’s included in the inspection?
The inspector will check:
- The plumbing to ensure the toilets flush and that everything drains properly.
- The mechanical systems, such as testing the electrical wiring, heating, cooling, and ventilation.
- The structural pieces of the home, which is the most important part of the inspection. They’ll examine the foundation, support structures, walls, attic, and roof. These fixes are typically the most costly and complex, so it’s best to find them before finalizing the sale.
What to do with the inspection results?
Review each item line by line and look for any major issues. Ask your agent to read over the results with you and see if they notice any red flags. If you find significant repairs are needed, you can request the seller complete them before closing or negotiate the price of the home based on the findings. If the seller declines and an agreement can’t be reached, you may be able to withdraw your offer.
Once you and the seller have agreed on everything, you’ll be ready for the closing phase.
Closing On Your Home
This is the exciting part, because soon you’ll be a new homeowner! Closing on the house completes the sale and makes you the official owner. When the time comes, make sure you review your Closing Disclosure, which will outline the terms, final closing costs, and any outstanding charges or fees included in your loan. Your lender will send the disclosure to you at least three business days before closing.
Closing costs include all fees required to execute the transaction, which includes attorney fees, title insurance, appraisals, points, and tax escrows. Typically these fees are paid up front. On average, closing costs total 3-5% of the purchase price.
What will happen during the process?
The process will be relatively simple for you and involve these key players:
- The closing agent will calculate legal fees, transfer taxes, and coordinate the deed.
- The lender for the mortgage will provide documentation of the loan, including the note, mortgage, closing fees, and other paperwork.
- The title company will provide documentation of clear ownership.
Once the check is delivered to the seller, you’re ready to move in.
The homebuying process is stressful enough, so take time to get informed about all the components. If you’d like to learn more about A+FCU Mortgages, visit our website to explore our various loan options and special programs before easily applying online.