Congratulations — you’ve found a home and you want to make an offer.
To the unprepared homebuyer, this could be an unnerving experience. But since you’ve done your homework and completed Steps 1 through 3, you are ready! Your Home Buying Team is in place and ready to support you through the negotiation process.
Let’s Make a Deal!
Once you locate a property you are interested in buying, immediately contact your American United Lending Partner. They will make sure that your Loan Approval Letter matches your offer and that the terms of your offer will be acceptable to our underwriters.
With that, your realtor will help you prepare a written contract, which starts with your written proposal. This proposal not only specifies price, but all the terms and conditions of the purchase. For example, if the seller agrees to help with $3,000 towards closing costs, this fact needs to be included in the written offer and in the final completed contract, or it may not happen at closing.
Your home buying team will guide you through the purchase agreement and any forms necessary to your closing. With your American United Lending Partner as your team leader and your realtor and attorney as your home buying team members, you will be well informed throughout the transaction.
After the offer is prepared and signed, it will usually be presented to the seller by your real estate agent and by the seller’s agent. You will need to include a small deposit, typically $1,000, with your offer to show that you are serious.
Specifics on the Offer
The purchase offer, once submitted and accepted by both parties, will become a binding sales contract known as the purchase agreement. For this reason, your offer must include all the important details necessary for the purchase of your home:
- Address and/or legal description of the property
- Sale price
- Terms of your mortgage commitment
- Estimated date of closing
- Amount of earnest money deposit
- Method by which real estate taxes, rents, fuel, water bills, and utilities are to be adjusted (prorated) between buyer and seller
- Provisions about who will pay for title insurance, survey, termite inspections and the like
- Type of deed to be given
- Other requirements such as attorney review, disclosure of environmental hazards such as asbestos and lead paint
- Provisions for a walk-through of the property just before the closing
- A time limit for the expiration of the offer
- Contingencies for the withdrawal of the offer
Your attorney will help you here.