If you’re buying a home for the first time, here’s a likely the question you’re going to ask your lender immediately after your offer gets accepted:
What happens next?
Even though there’s a good chance you probably covered some of the things to expect during your initial application process, there’s no way to go over everything that happens or even remember it all for that matter.
However, it’s not because you didn’t take notes or have a solid memory or have Google to assist you.
It’s because there are simply a ton of things that need to be harmonized between all the third parties involved who are helping you get the keys to your new home.
As an example, when your offer gets accepted, you’re typically on the phone contacting family and friends to share the exciting news.
It’s no longer a secret, you’re officially buying your first home and you’re overwhelmed with all sorts of emotions at this point.
But, perhaps unknowingly, this starts the train of third parties who directly or indirectly become a part of your journey to the finish line.
It’s human nature to have an opinion, offer support or even advice, and that’s exactly what your family and friends should do when they hear your news.
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In turn, this is also one of the reasons why you can’t fully prepare for what happens after your offer gets accepted as it’s nearly impossible to predict all the reactions you’ll receive from your big announcement.
Think about it — who’s going to be the preferred friend or family member to take the lead on helping you plan your house warming party?
Alright, that’s just the beginning. It has only been the start of your first full day into your escrow period and you still have an entire 20 days left.
Yes, that’s correct. A 21-day escrow period is pretty much the new normal, despite the previous widely used fast timeline of 30 days.
Although there are plenty of valid reasons for needing a short contract time frame, I’m just not sure if they all outweigh waiting another nine days to allow the purchase transaction process to unfold in a more relaxed manner.
Anyhow, over the next three weeks, you’ll need to quickly strategize on when to give notice to your current landlord, work with your Realtor on scheduling movers, circle back with the service professionals who provided the reports on your home and get together with your lender on your loan details.
For instance, your lender needs to collect information from the escrow officer, coordinate your appraisal order, help you with any home insurance inquiries, finish up your loan approval with the underwriter, lock your rate when market conditions are most favorable and carefully navigate around anything that might pop-up along the way.
Whether this successfully takes place in 30 days or a speedy 21 days, I applaud all the hard-working third parties who continuously work together in the housing industry to make this happen for you.