Negotiating a purchase agreement for a home

Lou Auger, Senior Mortgage Banker

(763) 390-7250 or (800) 466-3133 ext. 250

email: loua@summit-mortgage.com

Lou Auger

Senior Mortgage Banker

Summit Mortgage Corporation

(763) 390-7250

fax (763) 390-7350

Step 4 - Negotiate The Purchase Terms

Once you find the home you want to purchase, you need to determine what you feel the home is worth and then make a written offer. If you are working with a Realtor as a buyers agent, they will help you determine the value of the home by comparing the home you are interested in to other properties in the neighborhood that have sold recently. The Realtor will also help you write the offer to purchase and do the negotiating for you.

At this time I prepare a Mortgage Approval Letter that is given to the seller at the same time as your offer. The Approval Letter states that you are approved for financing adequate to purchase the home, but does not disclose specific financial information, credit information, or the full amount for which you have been approved. The seller just needs to know that you are capable of fulfilling the terms of the offer to purchase. It makes your offer as good as a cash offer.

Some of the issues that are negotiated at this time include:

	The sale price
	A list of appliances, window treatments or other items to be included in the purchase
	The closing date
	The possession date (Often, but not always the closing date)
	The amount of earnest money
	Whether or not your purchase is contingent upon an acceptable home inspection
	The type of deed the seller will deliver at closing (Warranty, Limited Warranty or Quit Claim Deed)
	If two or more people are purchasing will you take title as "Joint Tenants" or "Tenants in Common"
	Who will pay pending and/or levied assessments, if any exist
	Whether real estate taxes will be prorated to the day of closing or by some other means
	Will the seller be paying any closing costs or points for you
	Will the interest rate be locked in right away, or will it be left to your discretion to choose a later date to lock-in the rate
	Will disputes, if any, be handled by arbitration

Step 3 Step 5

[ Home ] [ ____Step 1 ] [ ____Step 2 ] [ ____Step 3 ] [ ____Step 4 ] [ ____Step 5 ] [ ____Step 6 ] [ ____Step 7 ] [ VA Mortgages ] [ Calculators ] [ Pre-qualify now ] [ Resource Library ] [ Current rates ] [ Testimonials ] [ Summit Mortgage ]