Insider Tips For Purchase Offers
When you find the house you've been looking for, it's time to write a purchase offer. Emotions tend to run high at this point because you really want this house to be your home. Here's the scoop on how to get serious about writing an offer on your dream home.
Most sellers will not accept an offer unless you are preapproved. A preapproval letter from a bank or a lender shows how much they will lend you. Getting preapproved for a loan helps establish your price range and how much you can afford. It also shows the seller your offer is serious.
Also, when you make an offer it is customary to include an earnest money deposit of a certain percentage of the home price. These deposit amounts vary between areas of the country. A general rule of thumb is to estimate about 1-3% of the offered price. The check for this is usually given to your Real Estate Agent at the time of offer or within a few days of your offer being accepted.
Don’t worry — this money sits in a third party escrow bank account until your closing day and is then credited back to you at settlement towards the money you bring to closing. If you are making an offer on a foreclosure property (REO or real-estate-owned) you may be required to submit a certified check rather than a personal check.
If you are paying for your home in all cash — the seller may require proof that you have the funds available to close. This could be satisfied by providing a copy of a bank or stock statement. Ask your Agent for more details on your specific situation.
Want more advice about all things home — including homebuying or selling advice? Nestiny is a great place for homebuyer education and to help you gauge how ready you are to buy a home. Journey Homeward allows you to enter all your wants and needs while the True Affordability Tool will break down your budget, showing what you can comfortably afford. You will also receive a Ready Report that will give you a vital head start in the home buying journey, saving you valuable time and money.
