Step 5: Option Period & Home Inspection
What Happens During the Option Period
You have 7-10 days (typically) to conduct inspections, review HOA documents, verify property condition, and decide if you want to proceed. During this time, you can terminate for any reason and receive your earnest money back.
Home Inspection
A professional inspector evaluates the property's condition—structure, foundation, roof, HVAC, plumbing, electrical, and more. The inspection typically takes 2-4 hours and costs $400-600 depending on home size.
Common Inspection Findings:
✅Minor maintenance items (normal wear and tear)
✅Deferred maintenance needing attention
✅Safety issues requiring immediate correction
✅Major system concerns (roof, foundation, HVAC)
After the Inspection
Review the report with your agent and decide how to proceed:
◾Accept as-is and move forward
◾Request repairs from the seller
◾Request credit at closing for repairs you'll handle
◾Negotiate a combination of repairs and credits
◾Terminate during option period if issues are too significant
We'll help you evaluate which items are reasonable to address, what's normal for the home's age, and how to negotiate effectively with the seller.
Step 6: Appraisal
Lender-Required Appraisal
Your lender orders an independent appraisal to confirm the home's value supports the loan amount. The appraiser evaluates the property and compares it to recent comparable sales.
❇️Timeline: Typically completed 7-10 days after ordering
❇️Cost: Usually $500-700, paid by buyer
Appraisal Outcomes:
◾Appraises at or Above Contract Price ✅
◾Sale proceeds as planned with no issues.
Appraises Below Contract Price ⚠️
Several options:
✳️Seller reduces price to appraised value
✳️Buyer brings additional cash to cover the gap
✳️Both parties negotiate a compromise
✳️Challenge the appraisal with additional comparable data
✳️Terminate the contract (if appraisal contingency exists)
We'll guide you through appraisal challenges if they arise and negotiate the best resolution.
Step 7: Final Mortgage Approval
Lender Underwriting Process
While you're conducting inspections and appraisal, your lender is working through final loan approval:
✅Verifying employment and income
✅Reviewing all financial documentation
✅Ordering and reviewing appraisal
✅Ensuring you meet all loan requirements
✅Preparing loan documents
Your Responsibilities:
✅ Respond promptly to any lender requests for documentation
✅ Don't make major purchases or open new credit accounts
✅ Don't change jobs during the process
✅ Maintain your financial status (don't deplete savings)
✅ Stay in communication with your lender
Clear to Close
When the lender issues "clear to close," all conditions are met and closing can be scheduled.
Step 8: Final Walkthrough
24-48 Hours Before Closing
You'll conduct a final walkthrough to verify:
❇️Property condition unchanged since your offer
❇️Agreed repairs completed satisfactorily
❇️All items included in sale are present
❇️Systems functioning properly
❇️Home is clean and empty (or as negotiated)
If issues are discovered, we'll address them before closing—either through repairs, credits, or delayed closing until resolved.
Step 9: Closing Day
What Happens at Closing
You'll meet at the title company to sign documents, transfer funds, and receive keys to your new home.
What to Bring:
✳️Government-issued photo ID
✳️Cashier's check or wire transfer confirmation for closing costs and down payment
✳️Proof of homeowners insurance
Documents You'll Sign:
✳️Promissory note (your promise to repay the loan)
✳️Deed of trust/mortgage (securing the property as collateral)
✳️Closing disclosure (itemizing all costs)
✳️Various affidavits and disclosures
Timeline: Buyer closings typically take 1-2 hours
After signing, the deed is recorded and the home is officially yours!
Step 10: Move In & Enjoy!
Post-Closing Tasks:
✅ Change locks for security
✅ Set up utilities in your name
✅ Update your address with USPS, banks, employer, etc.
✅ File homestead exemption (reduces property taxes)
✅ Keep all closing documents in a safe place
✅ Schedule any immediate repairs or improvements
✅ Meet your neighbors and explore your community
Congratulations—you're a homeowner!🎉🎉🎉
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