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Financing

You can get together with a lender to get your loan application completed and the financing process started. Be prepared to provide the lender with copies of any important and necessary information.  Once you are prequalified for a loan you can start to create a strategy on crafting an offer.

HOW MUCH SHOULD YOU OFFER TO PAY?


Percent of Buyers by Asking PriceShould you offer to pay the seller’s asking price or a lower one? Consider such factors as: How long has the house been on the market? Is its price reasonable? Your Realtor can show you comparable sales (comps) for similar properties in the neighborhood to help you. How competitive is the area’s home buying market? If the seller is offering an assumable mortgage or financing, how much is it worth to you?

 

MAKING DECISIONS ABOUT YOUR PURCHASE


Once you have found the perfect house, your Realtor will take you through the purchasing process: Submit your offer to buy the house. The seller may accept your first offer, or you may go through one or several counter-offers before you and the seller agree on the terms of the sale. Once you both agree, you have a contract of sale which spells out the details and responsibilities of all parties involved in the transaction.

 

WHAT CONDITIONS DO YOU WANT BEFORE BUYING THE HOUSE?


When you commit to buy the house through your offer, you may make that commitment contingent upon certain things happening, such as you securing financing for the home. In a similar vein, you may purchase contingent upon the sale of your present home by a certain time and under certain terms.

 

WHAT SPECIAL PROVISIONS SHOULD BE INCLUDED?


Most contracts for sale include some standard provisions, such as one for property taxes, insurance costs, utility bills, and special assessments to be prorated at closing between buyer and seller. Others outline particulars about what happens if the property is damaged before closing or if the seller or buyer fails to go through with the sale. You may want to add your own special provisions. For example, you may want a new home builder to provide you with home warranty insurance at no cost to you.

 

WHAT ARE YOU BUYING?


The contract should spell out everything that is part of the purchase that may not be clearly part of the real estate. Common items that could cause questions include appliances, light fixtures (such as chandelier in the dining room), shades, blinds, curtains and rods, screens and storm windows, shelving or cabinets, potted flowers, shrubs and trees, or perhaps a swing set that is cemented down.

 

WHAT HAPPENS TO THE EARNEST MONEY?


A "deposit" is made, in part, to show the seller your seriousness about buying. Your Realtor will inform you of the amount that is usually given in your area. The seller doesn’t actually receive the earnest money. A third party, Fidelity National Title - holds the amount in a special trust - or escrow account until the sale is closed or the contract is broken. If you go through with the sale, the money is applied to your down payment or other closing costs. If you fail to buy the house, the seller has the right to keep the earnest money. However, you can get your money back until the point at which you are notified that the seller has accepted your offer. And if the seller fails to fulfill his/her obligations, the money is yours.