What to do after your home offer is accepted

If you’ve made an offer on a home and it has been accepted, it can feel like the end to a long journey towards homeownership. While you’ve taken a tremendous step forward, there’s still quite a lot to do after making a successful offer.

We’ll walk you through what steps to take next so that you'll feel well prepared during this next, major phase of your journey toward homeownership.

12 things to do once a seller accepts your offer on a house

Once your offer has been accepted, here are the steps to help you simplify the process – and make sure you don't miss anything.

1. Deposit earnest money

Depositing earnest money – typically 1% – 3% of the sale price, but sometimes more – into an escrow account is one of the first things you’ll need to do in most states. This lets the seller know that you’re serious about going through with the sale. And don’t worry; this money will go toward your closing costs or down payment.

Make sure your purchase agreement includes an inspection contingency. With this, if your home inspection turns up significant problems with the home that result in your wanting to back out, you’ll get your earnest money back. Without an inspection contingency, the seller may not be legally obligated to return your deposit.

2. Pay the seller a due diligence fee (if applicable)

In some states, such as North Carolina and South Carolina, you may also have to pay a due diligence fee. This is a smaller fee – ranging from 0.01% – 0.05% of the home’s purchase price – but it’s nonrefundable. It gives you the right to access the property for inspections, checking zoning, and other needed preparations.

3. Secure a home loan

Before making a formal offer, you'll want to receive a preapproval from a lender. A preapproval letter from a lender states how much money they think you can afford. 

Once your offer for a home is accepted, you can still choose to switch mortgage lenders. In other words, getting preapproved with a lender doesn't mean you're obligated to move forward with them.

The loan details are finalized once the buyer agrees to move forward after inspections and an appraisal, and the offer is accepted. Lenders will review your income, financial information, and other details one final time to make sure you're eligible for the preapproved loan amount.

While trying to secure a mortgage, you'll want to be mindful of your creditworthiness. Steer clear of taking out any new loans or financing, which could negatively impact your credit score – and potentially jeopardize your loan approval.

4. Have the home inspected

A home inspection – and including a home inspection contingency in the offer – protects buyers from moving forward on a home that has issues that could lead to costly repairs.

During the home inspection, here's a buyer’s checklist of the areas of the property that the inspector normally assesses:

• Foundation
• Roof
• Doors/windows
• Plumbing
• Electrical wiring
  Cooling and heating systems
• Sink and shower fixtures
• Water damage issues
• Gutters
• Exterior siding
• General exterior

It's a good idea to hire a third-party inspector. When you work with an inspector a real estate agent recommended, it could lead to biased assessments. Instead, hire your own inspector. To find a reputable inspector, you can search the database for the International Association of Certified Home Inspectors.

If you are open to working with an inspector a real estate agent recommended, make sure you meet with them first and read reviews that you can find on them.

5. Have the home appraised

Your lender will also want an appraisal to approve your loan. This is different from a home inspection. An appraisal provides a fair market value of the home, which is based on comparable homes and sales in the area.

If the appraisal comes in lower than your offer amount, your lender is unlikely to approve your loan. For instance, if you offered $500,000 and the appraisal comes in at $470,000, you might have to make up the difference in cash.

6. Review the title

A house title has to do with the legal ownership of the home, and when you purchase a home, the ownership is transferred by means of a document, which is usually a deed.

Before ownership in the home can be transferred during the sale, the title company will need to research the chain of title. This makes sure the title is unbroken and free from any liens. While a title has to do with the legal ownership and rights to a property and history of its owners, a deed is public record and the physical document that's used to transfer ownership.

You might want to consider getting title insurance. There are two main types of title insurance: lender's title insurance and owner's title insurance. Lender's title insurance can help safeguard your lender against issues with the title to your property. Lenders usually require that you purchase lender's title insurance to obtain a mortgage. Owner's title insurance can provide an additional layer of safety over potential property issues that could pop up after the sale of the home, such as unpaid liens from previous owners or claim disputes.

7. Obtain homeowners insurance

Your lender will also probably require proof of homeowners insurance before you can close on your loan. Even if they don’t, this is a smart way to protect yourself from loss. Homeowners insurance policies typically protect your home – the actual dwelling – and your personal property and provide liability coverage (in case someone gets hurt on your property).

Depending on the area in which you’re buying a property, you might also need to purchase additional coverage for things not included in every policy, such as a rider for floods or earthquakes, for example.

8. Complete a final walk-through

A final walk-through can serve as peace of mind for you. You and your real estate agent can check that any requested work or updates you have asked of the seller have been completed.

• Your final walk-through checklist can include:
• All appliances are in working condition.
• Requested repairs have been completed.
• Windows, doors, and locks work appropriately.
• Screens and storm windows are intact.
• All switches and outlets are working.
• Outdoor areas are free of issues or problems.
• The home has no issues with pests (like mice, or spiders).

Should you or your agent suddenly discover an issue (like a pest infestation), you can contact the seller to take care of the problem before agreeing to close.

9. Schedule home repairs

If you have a list of repairs you wish to make that weren’t the responsibility of the seller, now is the time to begin scheduling contractors to ensure work begins on time. You'll want to handle this after closing, of course.

Any repairs that the seller has agreed to complete must be completed before close. Completion of the repairs should be confirmed during the final walk-through.

10. Schedule your closing

On average, it takes 30 – 60 days from the date your offer is accepted to closing on a house. It could be sooner if the seller is very motivated or you are preapproved, since mortgage approval is typically the longest portion of escrow.

11. Close on your new home

Closing is a packed day when you’ll sign a lot of documents (many of which must be notarized), escrow funds are transferred, the escrow company will file the sale with the local authorities, and you become the official owner. You may also get the keys to your new home unless the deed must be officially recorded first in your area. In that case, it may take several days to get the keys.

12. Transfer the utilities

After you officially close on your home, you'll want to schedule for the utilities to be transferred, which typically include:

• Electricity
• Natural gas
• Water
• Telephone/internet/cable

Ideally, you'll want to establish service at least a few days before your official move-in date. If setting up utilities requires an in-home service visit from a technician, make sure to schedule that. Also, it's a good idea to check if a company requires a deposit.

As a new homeowner, you can tell your utility providers when you plan to close on a home. That way, utility service is seamless. If an issue pops up and closing is delayed, remember to contact all utility providers.

Common problems to prepare for

Even after an offer is accepted, issues can arise. The escrow period, which is the time between the accepted offer and closing, gives you a chance to discover issues with the home.

And if you have the proper contingencies in place, such as the appraisal and inspection contingencies, you can renegotiate, ask for an escrow extension, or back out of the deal.

Potentially serious issues with the home

Some issues might turn out to be deal breakers. That's because they'll lead to costly, complicated repairs. For example, this might include: 

• Mold, mildew, and water damage
• Foundation cracks or settling
• Unpermitted additions
• Plumbing or electrical wiring repairs that are DIY (and not aligned with building code safety standards)

An appraisal that comes in low

Another common speed bump on the road to closing is an appraisal that comes in under your offer amount. If this happens, you have several options: You can walk away from the deal, renegotiate the deal, ask for a second appraisal, or pay the difference between the purchase price and the appraisal.

Here’s an example of the last option: If your offer is for $400,000 and the appraisal comes in at $370,000, but you still want the home, you can pay the $30,000 difference. This is true even if you have an FHA loan and planned to put down 3.5%.

This is why it’s important to keep an open mind and some flexibility through the escrow process. It will save you a lot of stress.

The bottom line: Know what to do after a home offer is accepted

Once a home offer is accepted, you'll need to check off a list of steps such as depositing earnest money, securing a mortgage, reviewing the title, and getting homeowners insurance. Inspections can help you avoid or prepare for issues down the road and spare you stress and headaches.

If you're shopping for mortgage rates during your buying journey, you can get preapproved with Rocket Mortgage.