After Your Offer is Accepted
After your offer is accepted, you, as the buyer will have a few important issues to take care of and alot will be done behind the scenes by your realtor, mortgage professional and title company.
First, the seller's agent will draw up contracts. The buyer always signs contracts first. One of the many services that I offer to my clients is that I sit down with you and review the contracts, paragraph by paragraph, until you are completely comfortable. After the sellers sign the contract and the buyer initials the attorney review page, the attorney review period will begin. During the attorney review period, both the buyer and the seller have the right to have an attorney review the contract. Any changes to the contract have to be done in this three day period.
Following the three day attorney review period is the 10 day home inspection period. It is highly recommended that you have a qualified, independent home inspector visit the property soon after a contract becomes binding. An inspector will evaluate the physical condition of the structure, construction and mechanical systems of the home, and identify defaults or any items that should be repaired or replaced.
It is important for the buyer to be present during the home inspection so the inspector can address any concerns or questions you may have. The buyer will receive an impartial written assessment report of the property. If any defaults are revealed by the inspection, you and the seller are limited to time period stipulated in the contract as to how long the buyer has to provide the report to the seller and how long the seller has to decide if they will cure or correct any defaults.
Other inspections that will be performed are the: termite inspection, radon testing, septic and well certification if applicable, land survey, flood search, smoke detector certification and certificate of occupancy.
Financing
You are expected to arrange the remaining steps of financing as soon as possible after you offer has been accepted. The lender will need to get started processing your loan right away.
Under the federal Real Estate Settlement Procedures Act (RESPA), the lender must deliver or mail to you a "Good faith Estimate" of all of the costs and fees associated with your loan, and who is responsible to pay them, within three days of receipt of the mortgage loan application. Be sure to compare your estimate with actual closing costs and inquire with your lender about any differences.
Homeowners insurance
The buyer will need to obtain homeowners insurance prior to closing. Your mortgage lender will not allow you to close the deal on your property without it. The companies you deal with for your other types of insurance may also be able to insure your home as well. But her too, it could pay to shop around. Visit www.njdobi.org for a list of insurers that write homeowner's policies in New Jersey. A paid receipt and declaration of issuance must be presented at settlement.
