When Writing an Offer
When writing an offer, you will decide on a price and determine what your down payment will be. A check will be needed at this time for the earnest money.

Earnest Money Deposit
At the time a written offer on a property is initiated, you will generally be required by the Seller to include a personal or cashier’s check as earnest money. The amount deposited into the listing broker’s escrow account or with the title company upon acceptance of the contract will remain in escrow until the time of closing.

The earnest money is credited to the Buyer as partial down payment and represents your intent to purchase the property. If the offer is not accepted, this amount will be returned to you.

Depending on the way the contract is prepared, in the event that your loan is not approved, the earnest money is refunded to you—provided the Sellers are given written notice regarding the lender’s disapproval by the Loan Commitment Deadline.

Counter Proposal
The Sellers may “counter” your offer with changes made to the original offer. You then have the choice of accepting their proposal or declining their offer at which point the original offer would be cancelled and the earnest money returned to you.

Loan Application
Once the Buyer and the Seller have agreed on price and terms of the contract, the next step is the loan application. (You may have already done this as previously suggested).

First, a preliminary information form is completed with a loan originator. This will expedite all the necessary paperwork and information as quickly as possible, including ordering a credit report and appraisal of the property.

The information you provide the lender is strictly confidential. The application generally takes place at the lender’s office. All people who will be on the title as new owners should be present. The application normally takes about one hour and you will be required to pay, in advance, for your credit report and the appraisal. The credit report will cost generally between $60—$100. The appraisal is required by the lender to determine that the amount of the loan does not exceed the appraised value of the property and normally ranges from $250—$300.

Your lender understands your concerns and is there to help with the approval of your loan. Feel free to ask any questions at the loan application about specific concerns or anything you do not fully understand. You will receive an “estimate of closing costs” (sometimes called “good faith estimate” ) from the lender so you wont have any surprises at the time of closing.

Home Inspection
It is always a good idea when buying a property to have a “Home Inspection”. Included in this type of inspection are: appliances, plumbing, electrical, heating/ventilation, bath/kitchen fixtures, basements/crawl spaces, garage, roof, attic, and general maintenance of your new property. The cost of a home inspection generally runs from $200-$400. Payment is due upon the completion of the inspection. You should plan to be at the inspection, however, a written copy of the report will follow a few days after the inspection.

A radon test is optional a the time of inspection. This is an additional charge and usually runs from $50-$200.

Title Insurance
When property is being sold or refinanced, the lender and the Buyer need a title commitment that will indicate exactly what recorded liens, encumbrances and recorded easements are currently in effect on the property. The title commitment will also indicate the vested owner of record and any restrictions on use of the subject property.

When the sale of the property is final, the title company records the necessary documents and then will issue a title insurance policy to the new Buyer and the lender showing clear title to the subject property.

Closing Checklist
Upon satisfaction of all contingencies outlined in the contract you are ready to go to closing. The following is a check list of items you need to have prepared or take care of prior to closing. Bring certified funds payable to yourself to closing. You should have the correct figure a day prior to closing.

• Call ahead of the date of the delivery of deed to have utilities put in your name. The title company will transfer the water and sewer services.
• Normally, call the phone company to set up installation.
• Consider having the locks re-keyed.
• Arrange for insurance coverage. If the title company is not paying for the hazard insurance from your closing costs, you may have to provide a certificate of paid insurance premium at closing.
• You may have a right to a “walk-thru” on the property before closing. Please make advance arrangements with the Seller or through your Realtor®.
• If anyone will be absent from the closing, you will need a Power of Attorney form signed and notarized. You will be charged a nominal fee for the filing of the document.
• Please bring your driver's license or another state or government picture I.D. with you, as you will be signing legal documents.
• Please allow approximately one-two hours for your closing.