Money. You need to have it to buy a house and showing that you have it is essential in getting the attention of the seller if you decide to make an offer on their home.
Part two in the buying process is all about morgtage application. This can be a confusing and somewhat stressful topic (especiallyfor new homebuyers) to tackle on their own. I find that having a discussion about what your financing needs are is really helpful. Together we can discuss borrowing options that may be best for you. If needed, I know some reputable Loan Officers who would be happy to help you with any of your financing needs.
Do your homework early and get your finances lined up priorto shopping for your new home. Having a pre-approval letter in hand when making an offer shows that you are a serious buyer and are motivated to purchase. In addition, knowing what you can realistically afford before you start your search will keep you focused on homes in your price range and not waste your time on ones that are not.
In addition to being pre-approved for a mortgage, you will also need enough cash on hand for your Earnest Money Deposit (also known as a GoodFaith Deposit). The amount varies by community and can be as little as $500, butis typically 1% to 2% of the offer price and could be more depending on the situation. Like the pre-approval letter, earnest money shows intent, which is important to the seller. If the seller accepts your offer, your earnest money will be deposited into the Listing Broker’s trust account and will be applied toward the purchase price of the home on closing day. If the seller does not accept your offer then your earnest money is returned to you. When the Purchase Agreement is fully executed by all parties to the transaction, it becomes alegally binding contract. At this point, if you recant your offer for no valid reason, in most cases, the seller is allowed to keep your earnest money.
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