Have you found a house and submitted your offer but aren’t sure what happens next? In this video, I’m going to walk through what happens after you get a contract. I’ll also explain how the loan process works so you can be prepared for every step.
Your Offer Is Accepted—What Now?
Congratulations on finding a house and submitting an offer! But remember, finding a property is only half the battle. Getting the financing in order and working with the lender is the other half.
If your offer has been accepted, you should already have been pre-approved and have an idea of your numbers—as long as your finances haven’t changed much. And if not, I’m going to kick your butt. What many buyers don’t realize is all the work that goes on behind the scenes.
Once you do have an accepted offer, you can’t officially start the lending process until you have a contract on the property. To understand what this means, we’ll look at the order of operations when it comes to lending. Most transactions take about 30 days, though that will also be negotiated in your contract.
Completing Your Paperwork
In week one, we’ll start the paperwork. Once your offer is accepted, you’re most likely going to put down some earnest money. Earnest money is important because it helps the seller realize you’re actually going to buy the home. They will then take it off the market and make sure they’re only working with you. This small amount of money will be held in an escrow account to be applied to your down payment and closing costs at the end of the process.
The only requirement of you in week one is to make sure that your lender has all of the paperwork they need to get started on your process. This is when the real process starts and my team gets to work for you. After we gather up all of your paperwork, we’re going to submit it to our processor. The processor acts as a second set of eyes to make sure everything’s in line for you and that the underwriter will like what they see.
We’re then going to submit the loan to the underwriting team. This process generally takes about 48 to 72 hours to get the results back—and then you will be conditionally approved. This means the underwriter has seen your introductory paperwork that we supplied. They may want to be shown more documents to prove what they need to know, so we might ask you for more documents. This includes 2 months’ worth of bank statements, the most recent month of pay stubs, 2 recent years of tax returns and W2s, and your most recent 2 months of credit history. We’ll then resubmit to the underwriter.
Also, if any of your information has changed since the time you were pre-approved or we started the loan process, we’ll want to update it.
Clear To Close
As long as you haven’t told us any lies or we haven’t found anything weird, we’re going to issue a clear to close. This is where you get to celebrate, dance, and do all the fun stuff because your work is basically done—except for buying the house. Once you’re clear to close, the only thing you have to do is show up to the closing on time and prepare to get your keys and get your house.
In the final week, we’re going to finalize the loan documents for you and make sure they get sent to the title company. We’ll also finalize all the numbers, closing costs, and the down payment numbers for you. We’ll also go over the closing disclosure together and make sure that you know what the numbers are so that you can make an informed final decision.
Next, we’re going to have you wire the money to the title company. When this happens, we want to make sure that you’re calling the title company to verify the instructions. There’s a lot of fraud out there, so make sure that that’s an important step in your process, or I’m going to kick your butt.
At that point, all you have to do is show up and sign the documents. This process usually takes about 1-1.5 hours. We push a couple of buttons, send a couple of $100,000s, and you are a homeowner.
Getting Into Your New Home
I hope this helped you understand what the process of getting a loan looks like. It’s never too early to get your financing in line to have a successful transaction after your offer is accepted. Regardless of what kind of property you’re purchasing, knowing your numbers is the most important part.
If you have any additional questions, please feel free to reach out to me directly. You can also download my A to Z guide here to help you through the homebuying process. Don’t forget to also subscribe to my channel so you never miss an episode!