So you've found the home you want to make an offer on. What comes next:
1. Your agent will run comparable homes that have sold in the area to determine market value. This will help set a starting point for offer price.
2. Do you need seller paid closing costs (lender and attorney fees)? This figure can be estimated by your loan officer and these are out of pocket costs to the buyer, in addition to your down payment. You can request the seller to pay a portion to help with the expense.
3. Earnest Money typically ranges from $1000 up to 1%. Seller could request more depending on terms and sometimes asks for up to 10% for cash deals.
4. Closing attorney is typically decided by buyer however seller may request their attorney if paying a portion or all of closing costs.
5. Close date is approx 45-50 days from offer date. The lender needs the time to process your loan. It can be quicker or longer depending on circumstances.
6. Due diligence period is the time the buyer has to conduct an inspection after offer acceptance, or binding agreement date. This is usually 10-15 days and can be extended if needed and agreed upon by both parties.
7. A financing contingency based on your loan (FHA, VA, Conv) is negotiated and standard is approx. 21 days. This is the time to get the appraisal, go through underwriting and get approval from lender on your loan.
8. Other things to negotiate: home warranties, termite bonds/clearance letters, refrigerators, items found on sellers disclosure, etc.
As you can see, there is quite a bit to consider when putting in an offer. That's why it's important to have a Realtor you can trust and who can guide you throughout the process! DreamKEY Group is here to answer any of your questions!