Making an Offer
Making an offer to buy a home, involves signing a sales contract
and paying earnest money or a good faith deposit. This deposit can
range from $100 to 10% of the price of the property. The deposit
along with the sales contract indicates your good intentions of
buying the house. You will not loose your deposit. It will be applied
to your costs at the time your loan closes.
Click the Offer
link to view a sample of the sales contract. A sales contract is
a legal document that requires careful review before signing.
You must be careful to include the contingencies shown below in
your contract offer to purchase the home. The contract will be on
condition of:
- Passing inspection.
- Final loan approval.
- Passing lead paint and termite inspection.
Inspecting the Property
Having a reputable inspector examine the property before you buy
it is important even if the home is new. Many factors in a home
can affect your safety and health. Knowing what to look for will
help you avoid buying a home with problems that could cause serious
harm.
Internet Field Trip
Take a moment to visit a Web site and download HUD's
free guide on home inspection. Follow the steps below.
Directions
- Click the House
Inspection link. This will display a
page on the HUD Web site with the detailed inspection
guidelines for Residential Rehabilitation.
Note: This guide is useful for inspecting any home,
not just those needing rehabilitation.
- Click to view each chapter or download the complete
guide under the Full Text section.
- Click the Close box to return to the course
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Now that you know why you need an inspection, you can follow the
steps below to ensure that conditions are met before buying the
home. Click the links below to see each step in the process.
- Select
an inspector.
- Walk
through with the inspector.
- Negotiate
the Inspector's Findings.
Inspections offer you some assurance that the condition of the
home will have a positive effect on its value.
You learned about mortgage products and financing. You examined
a sales contract and explored the inspection process. In the next
section, you will discover how to get ready for loan processing.
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