They accepted our offer. Now what?

Just got a call at 25 after 9 that the offer we submitted last Thursday was accepted on a new place. Said come down tomorrow to sign some papers, the sooner the better, and that was it. 

So now what happens?

Preapproved for $100k, our offer was $89k. No idea what happens to go from preapproved to "the house is yours, you owe us $xxx/month for the next 30 years". 

It's going to be a project house. I understand that, I really hope she does. Between cash and credit reserves we have almost $30k available to make it livable, from my estimations we should need less than half of that but it's good to know is there.

The only really major repair is the boiler, which needs replaced. The piping coming off and going to the rooms is suspect, because there's evidence of past leaks. 

Everything else is pretty cut and dry, remove carpets and ancient linoleum, strip wallpaper, paint, gut the half finished basement to be finished in the future, and get appliances. 

So now what is going to happen? What should I expect to need to bother the banks and realtor about?

The next thing you have to do is start a build thread.  Seriously, bring a non invested witness with you, and read the fine print. 

In reply to RevRico :

Is this the place with the huge garage? 

In reply to spitfirebill :

It is indeed. 43x48x25+, water, gas, and compressed air plumbed already. Nice concrete floor I'll need to get tested before buying a lift, but definitely room for at least one. 

The house itself is in much better shape than the pictures on the listing make it look, 4 bedroom, 3.5 bath, walk in closets on both floors, big divided up basement from the additions through the years, 10 foot ceilings, wide open kitchen, launder hookups upstairs and in the basement, unfinished attic that could be another room, covered porches front and rear. From aerial views from the tax office, the roof went on between 07 and 14. 

There will be a build thread/documentation when I have better pictures than are on the realtor site and my name on it. 

Dude congrats! Great price!!

dculberson said:

Dude congrats! Great price!!

No kidding. Very jealous. Around here that will get you a 1-bedroom apartment. Studio in a good school district.

Congrats Rev !

Congrats, that shop is killer. Around here, your purchase price would make a decent down payment on a crappy house on a postage stamp lot, nice score

As for "what happens next"

You need to go from pre-approved to actually approved.  This will require time and paperwork, lots of it.

There will likely be inspections, these will vary based upon requirements from your local authorities and the lender.

If you are like me you will stress and it will feel like everything is taking forever.   Then suddenly its all over and you own a house....then the fun begings.

Pick a closing date (again will depend on your company, my current house we closed in 20 days.)

Inspection.

House appraisal.

Fix any issues with home inspection or make amendments to price/terms of sale.

Closing day, you'll sign no less than 3,641 documents. Depending on your company closing will take between 20 minutes and 2 hours. Then you get the keys and move in while you wait another 15-30 days for the final approval of the loan.

So now that you've signed the paperwork, don't go buying anything with your credit cards, taking money out of savings, or anything else that might impact your credit score between now and after closing. 

Congratulations!

As the other posters said, let your lender know that the offer has been accepted so they can start the process, and then start arranging the inspections. Ideally you want the home inspector in your locale who is known for being picky - this may or may not be the home inspector your realtor recommends.

If the findings of the inspection are such that they warrant repair but aren't a condition of getting the loan approved (like finding a big hole in the roof), my personal preference would be to deduct the cost of the repair from the sale price. We've had the seller repair some of the inspection findings on our previous place and I got to redo some of them. At least if you control the repairs, you can get them done right.

Oh, and once you get to the closing stage, everything will be extremely last minute. When we bought a house last year the wire for the downpayment was delayed slightly for some unknown reason, and basically arrived in the escrow account as we were driving to the lawyer's office for the closing.

mtn said:

dculberson said:

Dude congrats! Great price!!

No kidding. Very jealous. Around here that will get you a 1-bedroom apartment. Studio in a good school district.

Honestly around here this price is pretty much a teardown, a trailer, or close enough to hear the neighbors fart. Still very surprised they took our offer, as this place is none of those things. 

It IS a foreclosure, the lenders knew that going in, but I'm not sure how much repair pass through or price negotiating will do beyond the 10% they already came down. Gonna try like hell though. 

We're heading out to meet the realtor and go over the beginnings of paperwork in the next 30 minutes or so. 

Pushing for 45+ days on closing. 

Fortunately you can do all of the never ending paperwork via the internets nowadays. Your realtor will text you to check your email. Then you open the email and click the link and e sign the papers and that's it. Expect that to happen quite a few times between now and closing. Like was said above by someone, the closer to closing, the more time critical things will be. It's just part of the game. 

need pics of garage!

Your agent should be guiding you through this unless you didn't use one?

sounds awesome! Congrats on the shop. 
 

I would recommend painting/polishing/etc the floor the day you close if you're going to do it.  The second anything gets put in there, it's over and emptying that thing out will only get more and more herculean. 
 

I'd also recommend getting your shelves sorted out in advance so you have places to put things. 
 

we bought a tear-down with a similar sized garage and it was immediately the storage for the house construction. Then it was the storage for the house and then my garage contents got vomited in there.  

Installing shelving when it has junk everywhere is a pain  

It's still getting sorted out 5 years later. 
dont do what I did. Haha
 

In reply to Lof8 - Andy :

more better pics coming. Big old barn doors front and rear although it's pretty overgrown getting from the back to the driveway. 

RevRico said:

mtn said:

dculberson said:

Dude congrats! Great price!!

No kidding. Very jealous. Around here that will get you a 1-bedroom apartment. Studio in a good school district.

Honestly around here this price is pretty much a teardown, a trailer, or close enough to hear the neighbors fart. Still very surprised they took our offer, as this place is none of those things. 

It IS a foreclosure, the lenders knew that going in, but I'm not sure how much repair pass through or price negotiating will do beyond the 10% they already came down. Gonna try like hell though. 

We're heading out to meet the realtor and go over the beginnings of paperwork in the next 30 minutes or so. 

I'm going to assume this is an FHA loan. So you'll have some good leverage toward negotiating fixes because the inspection for FHA properties is available for 6 months. So if they say, "Well we aren't fixing anything or changing the price" they have just potentially eliminated any FHA buyers for the next 6 months. 

Someone correct me if I'm wrong, this is how it was explained to me when I bought my current house.

RevRico said:

mtn said:

dculberson said:

Dude congrats! Great price!!

No kidding. Very jealous. Around here that will get you a 1-bedroom apartment. Studio in a good school district.

Honestly around here this price is pretty much a teardown, a trailer, or close enough to hear the neighbors fart. Still very surprised they took our offer, as this place is none of those things. 

It IS a foreclosure, the lenders knew that going in, but I'm not sure how much repair pass through or price negotiating will do beyond the 10% they already came down. Gonna try like hell though. 

We're heading out to meet the realtor and go over the beginnings of paperwork in the next 30 minutes or so. 

Pushing for 45+ days on closing. 

Why do you want to push closing so far out? Typically the goal is to get the house closed on ASAP. Typically your preapproval rate is only good for 30 days max from the initial preapproval letter. 

In reply to RevRico :

45 day closing date... 

Does your offer or their counter offer have a stipulation on closing by a certain date?  

Such as, "we accpt your offer but must close within 30 days."

In reply to John Welsh :

The 45 day plus closing thing was suggested by Wells Fargo when they drew up the preapproval. 

I know how horrible they are, but that's where the cosigner has his investment accounts, so that's where we went through. 

Personally, I'm hoping to fix Dana's credit and refinance somewhere else in a few years to get him off the loan, but that is a headache for another time

hell yeah!  Garage looks awesome!!  Worth damn near the purchase price all on its own.

In reply to RevRico :

You can refinance wherever, but chances are the bank/credit union you refinance with will sell your loan to one of the large banks and WF will likely end up buying it.

RevRico said:

In reply to Lof8 - Andy :

more better pics coming. Big old barn doors front and rear although it's pretty overgrown getting from the back to the driveway. 

Awesome work space.  My OCD is telling me though that the concrete pad needed to be shifted over to match the edge of the building and that would have some concrete outside the walk door. Ha

If I could find anything at all around here that wasn't on wheels for that money I'd be in it tomorrow. That shop alone would add $89k to the asking price of anything locally. 

z31maniac said:

RevRico said:

mtn said:

dculberson said:

Dude congrats! Great price!!

No kidding. Very jealous. Around here that will get you a 1-bedroom apartment. Studio in a good school district.

Honestly around here this price is pretty much a teardown, a trailer, or close enough to hear the neighbors fart. Still very surprised they took our offer, as this place is none of those things. 

It IS a foreclosure, the lenders knew that going in, but I'm not sure how much repair pass through or price negotiating will do beyond the 10% they already came down. Gonna try like hell though. 

We're heading out to meet the realtor and go over the beginnings of paperwork in the next 30 minutes or so. 

I'm going to assume this is an FHA loan. So you'll have some good leverage toward negotiating fixes because the inspection for FHA properties is available for 6 months. So if they say, "Well we aren't fixing anything or changing the price" they have just potentially eliminated any FHA buyers for the next 6 months. 

Someone correct me if I'm wrong, this is how it was explained to me when I bought my current house.

The contract we signed today had "conventional" checked.

The are 2 other active offers right now. One is full price contingent on a rehab loan, the other is less than ours. Our buying agent seems to think we're getting it though.

Closing date on the contract is February 28th, which gives me plenty of time to get work done as we're not moving mid school year.