Buying A Home What Happens Next

T

he offer on the home of         are working together.
your dreams has just been
accepted! What happens now?     Step 4: Inspections – Most
                                      transactions require the seller
                                      to provide a Pest Inspection and
The steps below are generally         good Realtors insist their buyers
what happen after the contract        get a Home Inspection to verify
has been accepted by the sellers.     the house systems are in working
                                      order and the building is in
                                      compliance with local
Step 1: Contract Acceptance –         regulations. Generally sellers
Yippee! – Celebrate (briefly, and     will pay to have all section I
then let your Realtor get to          items on the pest inspection
work!)                                repaired. Section II items on the
                                      pest inspection and items that
Step 2: Escrow Opens – Selecting      need repair or replacing as found
a title company is most often         in the home inspection may be
done by the sellers and the           subject to further negotiation.
selling agent generally opens the
escrow. Occasionally opening of       Step 5: Disclosures and More
escrow will be done during the        Disclosures - The mandatory
listing period.                       sellers disclosures include
                                      California Statewide buyer/seller
Step 3: Loan Application and          advisory, Supplemental Statutory
Income/Employment Verification:       Disclosure (SSD), Transfer
Most buyers have started this         Disclosure Statement (TDS),
process before looking for a home     Natural Hazard Disclosure (NHD) ,
and if you were pre-qualified         Lead Paint Disclosure. Your
much of this work is complete.        Realtor will make sure you get
Make sure your Realtor and Lender     and understand each of these.

                                      this contingency.
Step 6: Preliminary Title Report
– Provided by the title company       Step 10: Deposit Increase – If
this report will alert you to         asked this will happen after the
liens, easements, taxes and other     inspection period and removal of
items filed on the property.          property contingencies.

Step 7: Property Appraisal – This     Step 11: Selecting and Obtaining
is ordered by and is primarily        Hazard Insurance – This is
for your lender to confirm the        coordinated with the Lender and
value of the property. Most often     Title Company but it is your task
the appraised value will be the       to make happen. If this is your
amount you have agreed with the       first home your Realtor and
seller to buy and sell. Read this     Lender will be able to guide you.
report carefully, there is a
wealth of information about your
new home.                             Step 12: Home Warranty – If the
                                      sellers agreed to acquire a Home
Step 8: Removing Financing            Warranty as part of the purchase,
Contingencies – Unless otherwise      now is the time for it to be
stated in the California Purchase     ordered. If the sellers are not
Agreement this happens 17 days        buying the policy, you may order
after the contract is signed.         and pay for one. They generally
                                      cost between $300 and $400 and
Step 9: Removing                      are well worth the expense.
Inspection/Property Contingencies
– You, as the buyer, have, unless     Step 13: Signing Documents – This
otherwise stated, 17 days to have     will be scheduled by the title
the home inspected and review         company and most often will be in
reports before you must remove        their office or if you are not is

the same town can be done at a        property is transferred from the
title company in your city. If        seller to the new owner. It is at
you have a good Realtor or Lender     this point, you will have access,
they will be there to help answer     unless otherwise arranged, to
any questions you have. You will      your new home.
be signing more documents than
you ever imagined!                    What I have described in the
                                      steps above is a typical
Step 14: Final Walk Though – This     transaction between a buyer and
is an important inspection made       seller. The steps may happen in a
by you to make sure the home is       different order or in the case of
in the same or better condition       issues, which are not abnormal,
as it was when the Purchase           may happen more than once. For
Agreement was signed. Make sure       example it is not uncommon for a
your Realtor is with you and has      property appraiser to re-inspect
a check list of items to review.      the property if there were code
This is where you can verify the      or safety violations.
seller made required repairs
agreed to under the contract and      Buying a home is a big step and
subsequent amendments.                for most of us, one of the
                                      largest transaction we will be
Step 15: Close of Escrow – This       part of. Be prepared, for more
happens when all conditions of        information about each step and
the escrow have been met              how they may change depending on
including the receipt by the          the situation, give me a call at
title company of “good” funds.        916 276-6883 or email me at
                                      julie@jalone.com. In addition,
Step 16: Title Transfer – Often       read my articles on Reports and
referred to as “Recording,” this      Inspections and What You Need to
is when the actual title of the       Look for on Your Final Walk

Though for more detailed

information.

About the Author:

Julie Jalone is an experienced professional Realtor serving the need of buyers and sellers of residential real estate in the Greater Sacramento area including Placer, El Dorado, Yolo and Yuba counties. Some of the communities served by Julie include Sacramento, Roseville, Rocklin, Lincoln and Granite Bay. Julie is a wife and mother living in Rocklin. For more information see her website, www.jalone.com, which includes listings, local real estate market analysis, news, resources for buyers and sellers and her daily weblog, ”Keep it Real in Sacramento.”