Third and Final Step..the keys are near!
So you have your pre approval, you have an awesome realtor and they have shown you the most perfect home. Now you have two choices, become squatters or put it under contract! I highly suggest buying it, you can’t negotiate lawyer fees like you can closing costs!
At this time, your agent will write up the purchase offer with you. You will need to discuss how much to offer. According to the NAR (National Association of Realtors) most homes sell for 98% of their listing price. Your agent will be able to help you come up with a price. This is where trusting your agent is important. They will know what kind of activity the house is getting and what other homes in that area have sold for. When you come to an agreed upon contract, you will need to provide earnest money. That is a “good faith” offer that you plan to uphold your end of the contract. That money will be taken off the purchase price at the time of close. Next you will have inspections, negotiate repairs and have an appraisal and occupancy inspections if they apply to your area. After that…you wait for the clear to close.
While waiting, DO NOT finance anything!! Not a washer…dryer…don’t open a credit card at Target….nothing!! Pay every bill on time. Treat your credit with kid gloves. Your credit report will be pulled up right before you close. This is not the time to have late payment or new charge…it could mean that your financing falls through. Now is not the time to pick out furniture or appliances.
The finish line is near!