When purchasing your real estate there are some important terms that you should feel comfortable with for your peace of mind.
- Relationship in Real Estate – when you decide on a “Buyer Agent” this is a form that you will sign that explains and outlines the duties of your “Buyer Agent” and discloses the relationship created.
- Buyer/Broker Agreement – when you decide on a “Buyer Agent” this is a form that you will sign that outlines the search guidelines and that you are committed to working with a specific “Buyer Agent”.
- Pre-Approval Letter – you should get pre-approved by a bank or mortgage company and receive a pre-approval letter so that you will know the price range of homes you can purchase. Also, you can include a pre-approval letter when you submit an offer so the seller can know you are already pre-approved.
- Buy/Sell Agreement – when you are ready to make an offer on a property your “Buyer Agent” will fill out a buy/sell agreement with you and then submit it to the “Seller Agent”.
- Contingencies – When filling out the Buy/Sell Agreement you will agree to offer a price along with contingencies to purchase. For example, you will purchase this home as long as you can obtain satisfactory financing terms. Another contingency is an appraisal contingency. You will purchase this property as long as the property appraises for at least the purchase price. Another important contingency is an inspection contingency that allows you to do a complete home inspection of the home to determine if there are any issues with the home.
- Earnest Money Deposit – when making an offer on a home the “Earnest Money Deposit” is the amount you agree to deposit with the Sellers Title Company that will be performing the closing.
- Executed Buy/Sell Agreement – If the Seller agrees to the terms of the Buy/Sell Agreement and signs the contract then it is said to be an “Executed Buy/Sell Agreement”. At this point you are now under contract on a home. Congrats!
- Closing – Closing day is when both buyers and sellers come to a Title Company and sign documents necessary to transfer ownership. Usually, buyers and sellers sign at different times on closing day. Once it is recorded then you are officially the proud new owner of a home. Congrats!
Here are some additional links for Buyers.