Offer Accepted, Now What? | Randy DeLaMare

Earnest Money

Your earnest money amount and due date are written in your purchase contract. It's commonly due within a few days of acceptance. Sometimes it's due with the offer, in which case this step is already done.
In many cases a personal check works. Sometimes a cashier's check is needed. Check with me to see what's required for your deal.

Refer to your Buyer Due Diligence form. It lists many possible steps, and it's up to you to decide which deserve the most attention.
The home inspection is selected and paid for by the buyer. Pricing varies with what's ordered. Most inspectors have a base price and charge extra for tests like radon, meth, mold, and geological conditions.
If there are questions about the lot itself, a surveyor can be consulted. This isn't common.

I'll work with the title company you choose. I have title companies I've worked with and recommend, but you may choose your own.
Title companies make sure liens are cleared from the property you're buying. Liens can be tax liens, mechanic's liens, second mortgages, unpaid utilities, or HOA dues. You don't want to find out after you buy that someone still has a claim.
The title company prepares the final paperwork and works with your lender on the closing statement, which summarizes the costs and payments among buyer, seller, and lender. For most loans today this is called the Closing Disclosure.
Settlement, often called closing, normally happens at the title company, where last-minute changes are easiest. The escrow officer can sometimes come to another location.
Closing is complete when all documents are signed, funds are disbursed, and the deed is recorded.
Buyer and seller may each use their own title company, which usually creates a split closing. Sometimes a seller requires one designated title company. Even then, as the buyer you can usually buy your title insurance (recommended) from the company of your choice.

I send the contract to your lender and follow up with them and the title companies.
The lender orders the appraisal, normally after the home inspection is finished and any negotiations from the due diligence period are settled.
While you're under contract, check with your loan officer before making any purchase, especially one that involves a loan. Don't do anything that could hurt your credit score or creditworthiness.
Your lender may ask for more information, such as bank statements, pay stubs, gift letters, or employment verification. Please respond quickly to these requests.

I'll work with your inspector to schedule the inspection and help with access if needed. Most inspectors spend a couple of hours at the home, then invite you to come and go over their findings. A full report usually follows shortly after.
Tell the inspector your concerns and any tests you want, such as meth, radon, mold, or foundation tests. The inspector can quote the fees for each. Test results take extra time.
Utilities should be on for the inspection, and arranging that can take time. Sometimes buyers pay to have utilities turned on for a testing period, and there may be a re-winterizing fee afterward. This is very common with HUD homes.
You can do your own inspection or bring your own experts.
An inspection isn't required, but it is highly recommended.
Need a local inspector? See my Home Inspectors list.

Call the utility companies to ask about high, low, and average monthly costs for the home you're buying.
Electricity varies across the region. Several companies provide power in Southern Utah, and which one serves a home depends on its address. Rates differ. Ask me or the seller's agent who provides power to the property, then ask that company about typical bills.
Natural gas in much of Utah is provided by Enbridge Gas Utah, formerly Dominion Energy and Questar Gas. Not every home has gas service, so confirm it for the property.
Water and sewer are local. The seller disclosures should say who provides them. In some neighborhoods they're included in HOA dues.

Check public sources for crime reports, the sex offender registry, and other safety concerns. Your local police department and the state registry are good starting points.

Your due diligence period is the time to check out local schools, churches, medical facilities, city offices, HOAs, codes and restrictions (CC&Rs), and nearby businesses.
Test your commute, public transportation, and local culture.
Start a change-of-address campaign. The post office has kits to help. You'll need to notify creditors and, in some cases, professional licensing entities.
Set up utility changeover dates, and stay flexible, since closing can be delayed. Some water districts require proof of ownership to sign up. Your final closing paperwork can serve as proof, but you won't have it until after closing.
Your lender will require homeowner's insurance. Give your lender the name and contact information for your insurance company. First-time buyers may get a discount for insuring the home and vehicles with the same company.
This page is a living document and keeps evolving. Your comments and suggestions are welcome, and unique questions will likely come up during the under-contract period.