Home Buying 101: Step 5-What Happens After The Option Period…

Abby Husbands
Published on February 26, 2019

Home Buying 101: Step 5-What Happens After The Option Period…

Today on my Home Buying 101 Series, we’re going to be talking about the 5th and final step.
And all the fun little things that happen after you get out of the option period, now. Okay, welcome back. We’re going to be talking about step five, which is all the fun little things that happen after you get out of the option period. I have already recorded a video that describes everything that happens during the option period, so I’m going to plop that into the series, but I’m not going to make another video on it because I’ve already done that.

So, you’ve made it out of the option period with flying colors. You and the sellers have come to an agreement on either making repairs or they’re going to give you money for the repairs or closing costs or whatever. But you’ve come to terms on the up terms on the option period and this is the time that your lender is going to order the appraisal and the appraiser comes out obviously. And what you want is for the home to either appraise for your offer price or more so that you can have instant equity when you move in. So if you offered $250,000 on a home, you want it to appraise for $250,000 or more.

After they ordered the appraisal, they’re also going to be working on your loan, trying to get that package put together, send it to processing, and then over to underwriting. During this phase, you’re going to want to respond to all of your lender’s requests for any supporting documentation. Just keep in mind that this phase is crucial in order for you to make it to underwriting and get the clear to close so that you can get this mortgage and the home time is of the essence. If they ask you for supporting documentation, send
it over as soon as possible. This is also a great time to start packing. It’s also a time to be shopping around for homeowner’s insurance to get the best deals. Call around to several companies or you can call a broker that can do that for you. You’re going to want to set up or transfer your utilities, arrange for movers or schedule a U-Haul. You’re also going to want to change your address and all of your bills, your creditors and pop one of those cute little postcards in the mail for the post office.

A day or two before closing, you’re going to want to do a walk-through with your realtor. You just want to make sure that everything that you have asked for on your repairs addendum or anything that you had mentioned in your contract, like say you want the whole house professionally cleaned and the yard mowed or manicured. You want to do a walk-through a day or two before to make sure that all of that has been taken care of prior to closing. If it has not been taken care of, you can delay closing until it is completed by the sellers. That’s why I do it two days before closing because it gives the sellers and extra day, just in case they forgot to have the house professionally cleaned or they forgot to have the hot water heater fixed, for example. Do your walkthrough before so that they can give you documentation for anything on your repairs list. Those repairs need to be completed by a licensed tradesman/woman.

So you’ve been given the clear to close, you’ve been giving the Closing Disclosure from your lender. Now it’s time to mosey on over to the closing table. You will close on the day that is specified in the contract or before. Your agent should have made that appointment a week or two beforehand.
Make sure you show up with a government-issued ID. Once the buyers and
the sellers have both signed all of the documentation and your lender has funded your loan, you can pick up the keys from your title company and pop open a bottle of champagne because congrats, the home is now yours!

So thanks so much for watching. I hope you found this informative. If you did, please give me a big thumbs up. Please subscribe to my channel or share this video with your family and friends. If you have any questions, you can leave them in the comments section below, or you can reach out to me directly through my website, austin-texashomesforsale.com.

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