Once you and your Tody Homes Real Estate Agent have an accepted Purchase Offer you will need to have the purchase offer reviewed and approved by both the buyers and sellers attorneys in order for it to be an enforceable contract. Our agents are ready to guide you through the time sensitive agreement.
Good Faith Deposit or Earnest Money Deposit
When submitting the purchase offer you will need a bank letter the earnest money deposit or good faith deposit. This demonstrates to the seller your seriousness about purchasing their home. The money acts as a deposit on the property you are looking to purchase and is set aside in an escrow bank account and used as part of the down payment. The amount of the deposit is subtracted from the amount you will need to bring to the closing. If all of the contract contingencies are not met or the sale does not go through the deposit is returned to the buyer.
Home Inspections
Once your offer is accepted by the seller, you will want a licensed property inspector inspect the property within the time frame agreed on in the effective contract to purchase. You may also elect to have a radon or a lead based paint inspect the property. If you are purchasing commercial property, then you will need to have an environmental audit done on the site for the lending institution. We can recommend several different inspectors. All inspections are paid for by the buyer.
Appraisal and Lending
If financing your purchase shop around for the best mortgage company that fit your specific financial needs everything is negotiable even closing costs. If interested we will be more than happy to recommend several Mortgage Companies or Mortgage Brokers to you.
You will have more communication with the lender at this point in the buying process when additional documents are needed to approve your loan application get them to the lending company quickly.
In order to approve your home loan the bank will hire a Licensed Residential Appraiser to appraise the property. They will provide the bank with an objective, impartial, and unbiased opinion about the value of the property.
After you apply for a loan both you and your Tody Home Realtor will check with your lender periodically to make sure everything is on track for a successful closing.
Property Insurance
Property insurance provides protection against most risks to the property you are buying such as fire, theft and some weather related damage. If you are obtaining a loan, you will be required by your lender to purchase a certain amount of insurance on the property. The value will depend on the lending institution and the purchase price of the property.
House Title
Title refers to a document that lists the legal owner of a piece of property and the home. If you’re purchasing your home with a mortgage, your lender will require a title search and a lender’s title insurance policy, which will protect them financially against any claims against your homes title. The buyer pays these costs as part of their closing costs.