Thursday, May 26, 2011

Sealing the Deal


So the big news is... this week we signed the final paperwork committing us to buy the house!  In the last week we had a few more inspections.  Our real estate agent's contractor came out and took a look at the chimney problem we were having and gave us a reasonable bid for the cost of removing it.  He also pointed out the option of removing the chimney all the way down to the basement instead of just to the roof line, which would give us more room to expand the kitchen.  Early this week we had the furnace and central air inspected and serviced.  The technician delivered the good news that the air conditioning is in great condition and that the ancient furnace should last us at least a few more years.  Finally, we had a concrete contractor look at the foundation wall that is crumbling away.  His price for replacement was right around what we expected, but his good news was that there is no reason to replace it immediately.  He assured us that the house was not going to cave in on us and that we should just make sure to do it before we finish the basement.



With all this great news, we had pretty much decided that we were confident in buying the house.  Then, yesterday the sellers said that they would fix our sewer problem before closing.  This sealed the deal for us.  Not only will we not have to pay for the new sewer line, but we won't even have to deal with the hassle of getting in done!  The only thing that they asked in return was that we waive the remainder of the inspection period.  Since we've already finished all of our inspections we had no problem with this and last night we signed the paper work agreeing to buy the house!

So what's next?  First the house will be appraised on Tuesday.  The appraisal is done by the bank before they will agree to lend us money to buy the home.  They just want to make sure that the house is worth the amount that they are financing and that the house is in livable condition.  The appraisal would be more particular if we were getting an FHA loan, but because we are applying for a conventional loan (fingers crossed) it should be a breeze.  They will just be looking for major visible problems with the house.  For more about the appraisal, read Fearless Home Buyer's All About Home Appraisals.

Once the appraisal is done, if the bank has agreed to finance the house, we will just have to finish up all of our paperwork for the loan application.  The application is about 50 pages that we have to read through, initial and sign and in addition to that we have to update all of our banking and work information.  We also have to supply explanations for various discrepancies in our financial records such as variances in pay, any unusually large deposits and withdrawals, and Matt's busy work/school schedule.  Those underwriters are thorough people!

At some point during the next few weeks the sewer will be completed, and we will probably have a chance to go verify that everything was done correctly.  Finally, around June 13th we will have a signing appointment in which we will sign all the final paperwork and hand over our money.  The bank will take a couple days to verify that everything is correct and accounted for and then we'll close!  We should have the house around June 16th.  For more on closing, check out Fearless Home Buyer's list of Final Closing Steps.

Now on to packing!

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