Here are three things that every homebuyer needs to make a good offer.
1. Pre-approval letter. You want a solid letter from a reputable lender, preferably someone who works locally. This will let sellers know that you’re qualified to purchase their home. If you’re paying cash, you’ll need a proof-of-funds letter instead.
2. Earnest money deposit. This is a good-faith deposit that goes towards your down payment or closing costs at the time of offer. It’s essentially held in escrow throughout the process. If for any reason you back out and it’s not on the basis of contingency, this money would be the seller’s to keep. Usually, you’ll put down anywhere from 1% to 5% of the purchase price of a property in earnest money. Keep in mind that your closing costs are generally 3% to 4%, the earnest money amount is usually less than what your closing costs and down payment will equal.
“Ask your agent to provide a sample contract upfront so you can study it.”
These are the three things you’ll need to have to really start the home-buying process. If you have any questions about buying a home or anything else related to real estate, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.