Flat fee MLS - List Idaho - After the Offer

Buyer's Guide

Preparing to
Buy

Check Your Credit

Get
Pre-approved

Finding Your Home

After the Offer

Closing

After the Offer

Once the seller accepts your offer, there are still a number of things that have to happen prior to closing. The standard Real Estate Purchase and Sale Agreement (RE-21) used in our area, allows a specified amount of time to apply for a loan, obtain an appraisal, review disclosure documents, and inspect the property before completing the purchase. Once each of these steps has been completed, the contingency will be removed. If a problem is identified, you may chose to find another home or renegotiate the terms of the agreement. We can help keep the process on track and provide guidance if a problem occurs.

Loan Application – If you have not already applied for a loan, you will have a specified amount of time to apply. Your lender must furnish written confirmation to the seller showing approval of your credit report, income verification, and debt ratios in a manner that is acceptable to the seller. The letter should state that your loan has been approved and is subject only to the appraisal and final lender underwriting.

Appraisal – Most lenders require an appraisal as a condition of the loan. In our area, the seller normally pays for the appraisal, but as always, everything is negotiable. If an appraisal is required by your lender and the property appraises for less than the agreed purchase price, your earnest money may be returned at your request. If this occurs, we can discuss other options for completing the transaction or help you find another home.

Disclosure Documents - Idaho Code requires sellers of residential real property to complete a disclosure form and deliver the form to the buyer or their agent within ten days of acceptance of the offer. The disclosure documents are not meant to be a substitute for an inspection and we always encourage our buyers to obtain a professional inspection. The disclosure document is not required for new construction, but the builder is required to disclose information regarding annexation and city services as prescribed in questions one, two and three of the disclosure form.

Inspection – We always encourage buyers to learn as much as they can about the home before they buy it. As a buyer, you have the right to conduct inspections, investigations, tests, surveys, and other studies at your own expense. The standard home inspector’s report will cover the condition of the home’s heating system; central air conditioning system; interior plumbing and electrical systems; the roof, attic and visible insulation; walls, ceilings, floors, windows and doors; the foundation, basement and structural components. The inspection may identify the need for minor maintenance or major repairs. Once the inspection is complete, issues will be resolved in accordance with the contract.

Preliminary Title Commitment – The buyer normally designates the Title Company to be used when they submit their offer. Title Companies handle escrow, perform title searches, and provide title insurance services to buyers, sellers, and lenders. A title search involves searching public records to ascertain if the seller has the legal right to sell the property. The Title Company will review the history of ownership; they will determine who purchased the property, who sold it, and when. Next, they will perform a tax search to verify the present status of taxes. They also conduct a judgment search to determine whether there are any general liens against the property. Once the process is completed they will furnish a preliminary commitment to issue title insurance showing the condition of the title. Title insurance guarantees the title as reported. Should hidden defects surface at any time challenging an owner's rights, the title company will defend the title, in court, if necessary, and cover the owner's losses up to the full value of the policy. The Title Company can be crucial to the process of buying a home, so it is important to choose a company that's known for service.