You’ve found the home you want, made an offer and it has been accepted. Now what?
Once your offer is accepted, be prepared to seal the deal with a deposit. This is usually a percentage of the home’s purchase price that indicates you’re serious about buying and indicates your good faith. A deposit is generally applied to the purchase price when you complete the transaction, but may be forfeited to the seller if you fail to satisfy the purchase. Your agent can help determine the deposit amount you should be prepared to pay, based on your target home price.
Many first-time buyers are taken by surprise when it comes to the deposit, especially if they have to make a fast offer. You should have funds available in your checking account so you can wire funds to escrow the day your offer is accepted. This item could be very important, and the deciding factor in your offer being accepted or not. Be sure to focus on your deposit when developing your negotiating strategy.
This is the phase the due diligence is performed to make sure your home loan has been approved, the property is in the condition you expect, and all legal documents pertaining to homeownership are prepared and officially recorded.
Escrow can be an anxious time for all parties. But knowing in advance what to expect can help you get through the process.