Loan Road Map: Stop #3 Purchase Agreement

You received a pre-approval letter, found a house you liked and made an offer. Now what?

When you submitted your offer in writing, you decided on what price to offer on the home, if the offer would be contingent upon the home inspection and a deadline for a response. The offer is followed by a deposit known as earnest money, and usually is in the form of a check.

A home purchase agreement is a legal contract outlining the agreed-upon price and terms for the purchase of a home. The agreement addresses financing and has specific dates for closing on the house. It also contains:

• The closing date
• Additional items that are considered part of the purchase price (fixtures, appliances, etc.)
• The real estate agent’s commission
• The buyer’s deposit
• How much the buyer needs to finance
• Home inspections and additional testing
• Cost adjustments
• Any special conditions and contingencies

The purchase agreement includes when you will be able to take possession and ownership of the home.  It also outlines how you and the seller can legally back out of the deal. If the seller attempts to back out of the deal with items not listed in the purchase agreement, you will be able to receive damages.

To view Stop #1, click here. 

To read about Stop #2, click here.