A Step-by-Step Guide for Buyers
So, your offer was accepted. Congratulations! That is a big milestone in your home buying journey, but it is far from the finish line. There are still several important steps between now and closing day.
Whether you are a first-time buyer or just need a refresher, here is what to expect and how to stay ahead once your offer gets the green light:
1. Earnest Money Deposit + Initial Data Review
Once your offer is accepted, you will typically submit an earnest money deposit. This shows the seller you are serious and helps secure the contract. That deposit is usually held in escrow and applied toward your closing costs or down payment.
Most contracts allow a short window to verify key information before moving forward. Take this time to research school districts, zoning restrictions, crime statistics, insurance premium estimates, HOA rules and fees, and internet availability. This is your opportunity to confirm that the property and location align with your goals.
2. Home Inspection
Next, you will schedule a licensed home inspector to evaluate the condition of the home. This includes the roof, HVAC, plumbing, electrical, foundation, and more. You will receive a detailed report, and based on the findings, you may choose to negotiate repairs or ask for seller concessions.
3. Repairs
If any repairs are negotiated during the inspection process, they should typically be completed by a licensed, insured contractor. Be sure the seller provides paid receipts and, when applicable, lien waivers. These documents help ensure the repairs were done properly and that there will be no issues with title insurance coverage.
4. Appraisal
If you are using financing, your lender will likely order an appraisal to confirm that the home is worth the loan amount. If the appraisal comes in low, you may need to renegotiate the purchase price, bring additional funds to the table, or in some cases, exit the contract if a contingency applies.
Note: A loan is not required to order an appraisal. Always check your contract for specific terms around appraisal contingencies.
5. Survey
While surveys are commonly associated with large parcels of land, they can be useful for many properties. If you plan to install a fence, share a driveway, or have questions about boundaries, ordering a survey is often a wise choice. Ask your agent or title company for guidance.
6. Loan Approval and Underwriting
Even if you are pre-approved, your lender still needs to complete a full review of your finances. This includes verifying income, employment, debts, and other financial details. The underwriting process may take a few weeks, so be responsive and avoid making any major financial changes.
Avoid large deposits or purchases during this time. These actions can delay or even jeopardize your final loan approval.
7. Title Search and Title Insurance
The title company will conduct a search to confirm there are no outstanding liens, unpaid taxes, or legal claims on the property. Title insurance protects your ownership rights if any title issues arise after closing.
Your contract will typically determine which title company is used and how the title insurance is paid for. Lenders also require a separate title insurance policy to protect their interest in the property.
8. Set Up Utilities
It is important to set up your utilities before closing day. Contact electric, gas, water, trash, and internet providers early so everything is ready when you move in.
Some utility companies will not allow service transfers until you officially take ownership. If the property is being purchased through a trust or LLC, be prepared to provide documents proving ownership. If you or your agent need to activate utilities before closing, make sure you have written permission from the seller. Some utility companies may require a copy of the contract to process the request.
9. Final Walk-Through
Usually scheduled within four days of closing, this is your chance to verify that the property is in the condition agreed upon and that any negotiated repairs are completed.
The contract determines the terms of this walk-through, including whether the seller must keep utilities on or if the buyer can have them turned on prior to closing. Utility companies may require proof that the seller has given permission, often in the form of the purchase contract.
10. Closing Day
At closing, you will sign all the necessary documents, pay any remaining costs, and officially become the homeowner.
Bring a valid photo ID, any required certified funds, and be prepared for several signatures. Once everything is finalized, you will receive the keys to your new home.
Work With a Realtor Who Guides You Every Step
Buying a home involves far more than just making an offer. A trusted realtor will guide you through each step, keep you informed, and advocate for your best interests from contract to closing.Have questions about buying a home in Columbia, MO? Let’s talk!
I’d love to help you feel confident and prepared!