Pre approved, offer accepted by owner. What's my next step?

[Jonathan Kramer]

I got pre approved before looking for a place, found a great place, she wanted 32 I offered 25 and we settled on 26. Home inspection is done, repairs are estimated at 2,000. Is my next step to tell loan officer I'm ready to apply for the loan, then they will do their appraisal and all that jazz to determine if it's worth the amount being paid? Or is there something else I should be doing? Can someone can me a step by step please. I'm nervous lol

[Adam Petterson]

@Jonathan Kramer it will depend on how you plan to finance the deal. If you are planing on getting a conventional mortgage there will be a 4-6 week process. If you are content with the results of your inspection, and don't want to re-negotiate, send the executed purchase agreement to both your title company and lender for them to start their work. Your lender will work on the correct disclosure information and will request any more documentation they may need. They will then request an appraisal and coordinate the closing with your title company. Remember, the lender and title company are part of your "purchasing team" and will help you set up your closing and will answer any questions you may have. They are only paid if you complete the transaction, and therefore are usually willing to help with questions and want to make sure everything stays on track.

If you plan on using a "commercial" loan product, or a loan that the bank will keep on its own books, then the process will vary by lender. With the financial institution I worked for we were able to coordinate an approval, appraisal, title work, and closing in approximately 3 weeks (sometimes even shorter for repeat customers).

As @Donna Salmiery says above, make sure you have contingencies in your offer in case you have an issue acquiring financing, appraisal , etc. This way you are able to re-negotiate or walk away from a deal without losing your earnest money if there is an issue with financing, appraisal, inspection, etc.

Best of luck