Once you’ve found a house and made an offer on it, there are several steps that must take place to complete the deal. These steps include depositing earnest money, arranging for an inspection and securing financing. You also must set a closing date and get the seller to sign all of the necessary paperwork.
The Offer You Make
When you’re making an offer on a home, it’s important to make sure that your purchase price is fair and within your budget. Your real estate agent will help you determine this by examining the market and taking into account what similar homes in the area are selling for. You can also ask your agent to show you the sale history of homes near the one you’re interested in buying.
Depending on the terms of the offer, you may be asked to provide earnest money. This is usually a small amount of cash (typically 1 to 2 percent) that you deposit into your buyer agent broker’s account as a sign of your seriousness in the transaction.
Pre-Approval From Your Lender
You’ll need to get your loan pre-approved before you submit an offer on a house. This will help the seller know that you’re qualified for the mortgage and will be able to close on the home once the offer is accepted. Learn more https://www.clevelandhousebuyers.com/sell-your-house-fast-in-vermillion-oh/
A pre-approval letter is not a legal requirement, but it will give you an edge over other buyers who aren’t pre-approved. The lender will verify your finances, credit score and income level to ensure you can qualify for the mortgage.
The Offer You Make
Once you have an offer on your house, it’s important to follow up with the sellers to make sure that they are satisfied with the deal. This is particularly true if there are any issues that have arisen as a result of the inspection, appraisal or other aspects of the home’s condition.
If you discover that there are significant defects in the house or that it’s not in the same condition as it was when you first saw it, you can request an additional time period for the sellers to repair them. If the seller can’t meet this request, you may be able to walk away from the deal at that point.
Backing Out of an Offer
It’s common for buyers to back out of a purchase contract. This can happen when the home inspector reveals major problems, when the appraiser finds the property is worth less than what you’ve offered or when you’re not approved for the mortgage.
This can be a stressful and emotional time for both the buyer and the seller. But if you do end up reversing your decision to buy the home, you must do so in accordance with the conditions of the purchase agreement.
You can often do this without losing your earnest money deposit or any other legal repercussions. However, it’s a good idea to have a strong attorney who will guide you through this process.