12 Weeks to Homeownership – Week 6
Getting Into Contract on a House
Well, it’s week 6 and by now you may have found the perfect one that has kept you up at night!
Now, if you’ve seen enough homes and you are ready to make an offer on the home of your dreams, keep in mind that a written and signed (ratified) purchase offer can bind both you and the seller.
This is where your real estate agent is very important.
They are going to guide you. They are going to advise you and help you keep your goals in mind.
You have to trust in your agent and go over all the details.
You’ll probably have several contingencies like:
- a home inspection
- a pest inspection
- an appraisal
- the closing date
These are just as important as the offer price.
So, pay close attention as your agent is your negotiator.
Your agent may want you to “sweeten” the offer – maybe it’s an unusual request such as writing a letter to the sellers or doing a video explaining what you love about the home and why it’s perfect for your family.
Even rent backs may help you succeed. These are allowances for the seller to rent back the home after closing for a short period of time while they close on their next home.
In this seller’s housing market, many homes are receiving multiple offers and some even over asking price so you need to do whatever it will take to set your offer apart from the rest to get accepted.
Now, your agent will be a great resource for this.
If you are accepted, it is called in contract as you are now bound to the agreement between you, the buyer, and the seller.
You will be asked to write a check for the earnest money.
This is why it was so important to make sure your funds are accessible last week.
The earnest money is usually refundable if the contingencies are not met by the seller or the home.
Make sure you understand every detail of your contract.
So now, you should have an offer accepted and you’re in contract.
Now, the clock starts ticking down to that closing date.
If you have followed this process and responded quickly to your lender and real estate agent, you should be in shape to close on time or even early.
Please, watch my video on do’s and don’t when you’re in contract. It’s important to keep the status quo on your finances, job and marital status.
Remember to keep communications open, be responsive, and congratulations!
We’ll continue on next week and remember – our Folsom mortgage team is here to answer any questions you may have! Don’t hesitate to give us a call at (916) 985-3200.