First-Time Home Buyers: Steps to Take After Making an Offer

Congratulations, first-time home buyers, you’ve been pre-approved for a Florida home mortgage; you’ve hired a helpful real estate agent; you’ve found a beautiful home and submitted your offer. Now what?

First, take a deep breath and feel good about the future. But also be aware that making an offer only the beginning of the home-purchasing process. Here are a few important steps that can guide you through to closing:

1. Wait for the response. After your agent submits your offer, the seller has three options: accept it, reject it outright or respond with a counteroffer. If the seller rejects your offer without coming back with one of his own, it may be because your price was too low. It could also be that your offer included certain conditions that were unacceptable to him.

Also, he may have received multiple offers, one of them a higher bid. Often, however, sellers will send back a counteroffer, usually asking for a higher price. Or sometimes they’ll request a more favorable closing date or a change in one of your conditions. You must then consider whether or not to accept their counteroffer or make a counteroffer of your own.

2. Hire a settlement agent. Once you and the seller have agreed on an offer, you need to begin paperwork. A settlement agent (also called a closing agent) can help you through this part. Ask your Florida mortgage lender or real estate agent for a recommendation. The agent, often a lawyer, can take care of the title search, obtain a property survey, ensure that any prepaid taxes and utility charges are divided fairly and handle any other legal requirements of the sale.

3. Get a home inspection. It’s always a good idea to make your home offer conditional upon a home inspection. . A professional inspector can identify trouble spots, such as a cracked foundation or a rotting roof. A specialized inspection can also be conducted to detect the presence of termites. You can then request that either such problems be fixed or the price be reduced to compensate.

4. Arrange home insurance. Your mortgage lender will require that you take out a home insurance policy to protect your home and the lender’s investment. Find out if any special coverage must be included (flood insurance, for example) and shop around for the best deal.

5. Close the deal. Before closing day, be sure to get a copy of the final settlement statement (also called a HUD-1) from your settlement or escrow agent. It will list all of the final closing costs for you to review and give you a chance to make sure there aren’t any discrepancies.

Now, all that remains is signing your Florida mortgage loan contract, paying any outstanding balances and obtaining the keys to your new house!