Steps to Take After an Accepted Offer
Below are 10 steps to help complete your side of the real estate transaction. Most of these tasks coordinate with a deadline which can be found in the accepted purchase agreement. We recommend that you mark your calendar with these important dates. Your real estate agent should be in constant contact with you from the time you have entered into a bound contract; do not hesitate to reach out to your agent with any questions you may have.
1. Deposit Earnest Money. The earnest money check in the state of Colorado is deposited by the listing brokerage and is due by the third day after an accepted offer. If you have forgotten the amount, don't hesitate to ask your real estate agent; they will help you mail the check, or the broker can hand deliver it for you. The earnest money is treated as a safeguard for the seller or a "good faith" deposit from you. The sellers are essentially taking their home off the market so they can sell it to you.
2. Reconnect With Your Lender. By now you have already pre-qualified for the loan. Your agent will send your lender a copy of all documents related to the purchase. Contact your lender and ask what other personal documents you will need to provide in order to obtain financing.
3. Home Inspection. Do a bit of research on this prior to choosing a home inspector. Ask your real estate agent, friends, and family who they would recommend. You can meet the home inspector and your agent at the property if you'd like him to walk through the issues that arise. Other inspections can be done during the inspection period as well. The general inspection may note roof issues or a leak in the plumbing. Items like these may require a licensed roofing or plumbing contractor for further inspection.
4. Title Search. The company that is going to handle your Title Insurance will send you and your agent a Preliminary Title Report. This report will show any liens against the property (for example, unpaid HOA dues). Your real estate agent can let you know if there is anything on the Preliminary Title Report that is concerning. There is usually nothing you need to do with the report... just review it and ask your real estate agent or lawyer if you have any questions or concerns.
5. Homeowner's Insurance. You will need to provide a homeowner's insurance policy to the lender several days prior to closing on your new home. A good place to start is with the insurance company that insures your vehicle or renter's insurance. Again, it never hurts to ask your real estate agent or friends and family who they have had a good experience with.
6. Appraisal. Your lender will order the appraisal if you are financing your purchase. There is language in the purchase agreement that allows you to renegotiate or back out of a bound contract if the property does not appraise for the agreed-upon price. Likewise, your lender will not fund an amount over the appraised value of the property.
7. Transfer Utilities & Mail. The buyer owns the property on the day of closing in the State of Colorado, so when you set up your utilities, have them put in your name on the day of closing. Head over to our Utility Companies page for a complete list of service providers in your area. Transferring mail should be a done a couple days prior to closing and can be done online for one dollar.
8. Schedule Closing. Your lender will contact you and your agent to notify you that all the requirements have been met in order for you to obtain financing and will say that we are "clear to close." You will need to coordinate with the title company and your real estate agent for a time that is convenient for all parties to sign paperwork.
9. Final Walkthrough. Usually the day of or the day before closing you have one final chance to walk through the property to ensure the home is being left in the condition that the sellers had agreed to. If you had negotiated any repairs for the seller to complete, you and your real estate agent will want to ensure that those items have been taken care of.
10. Closing. You will meet with the closing company to sign all appropriate documents related to the purchase of your new home. If additional funds are required to purchase the property, the title company and your real estate agent will explain how to transfer the money to the title company. Make sure to come to the closing with a valid ID. Once all of the documents have been signed and the money has been transferred into the appropriate accounts, your real estate agent will hand over the keys and the property is officially yours!
Adhering to the firm timeline established in the Purchase Agreement with your real estate agent is crucial when purchasing a home. Staying ahead of the process and asking your agent questions will ensure a smooth transaction.