What is earnest money/escrow? An earnest money deposit is a sum of money you’re willing to put down when you make your offer to show that you’re serious about buying the home. If you close on the home, the earnest money simply becomes part of your down payment. If you back out of the purchase (outside of a contingency), you’ll lose the deposit.
Should I get a home inspection? Yes, I highly suggest all buyers hire a qualified inspector. Depending on the age of the home, a 4-point inspection may be required to secure home insurance.
What is a contingency? A contingency is an agreement between the seller and the buyer or the lender and the buyer regarding conditions that need to occur for the sale to move forward. Some contingencies are necessary, like the appraisal contingency your lender will require to ensure they’re not overpaying on your loan.
What Is an Appraisal? An appraisal is the estimation of a home’s current market value. A licensed appraiser completes this estimation, which is calculated by comparing the recent sales of homes in the area as to the property that is being appraised. This is required by mortgage lenders to be sure that the money they are lending to a new homeowner or a current homeowner is a fair amount for the home.
When does the appraiser come out? The appraiser is ordered by the lender after the inspection period is over. Your lender/mortgage broker can give you more details on this.
When can I back out if I change my mind? This depends on the offer’s contingencies. For example, an inspection contingency would allow a buyer to back out during the inspection period if they change their mind. Contact me to discuss further.
How quickly can I close? Typically, within 30-45 days if financing. Cash deals can close significantly sooner.
When do I get the keys? You will receive the keys after the closing agent has confirmed all docs were signed and all funds have been transferred and confirmed by seller(s).
