| An agreement of sale is basically a contract | | | | 5. Find an escrow company. |
| between you (the homebuyer) and the person | | | | |
| who currently owns the home. When you get an | | | | Your realtor might be able to help with this |
| agreement of sale, it is easy to feel so | | | | one. You and the current homeowner need to |
| excited that you sign right away. However, | | | | decide on an escrow service. Research the |
| there are a number of things you need to do | | | | company fully. There are a lot of dishonest |
| before signing the agreement of sale, since | | | | escrow services that will take some of the |
| after it is signed you may not be able to | | | | money, as well as a number of scams. You need |
| make any kinds of requests or get out of the | | | | an escrow service you can trust and that you |
| deal. Here are the top ten things you should | | | | and the current owner both agree upon. |
| do after you get an agreement of sale: | | | | |
| | | | 6. Put your money in escrow. |
| 1. Read the agreement of sale start to | | | | |
| finish. | | | | Once you've decided on an escrow service, put |
| | | | your money in escrow. Adding your down |
| You've probably already discussed everything | | | | payment to the escrow account means that |
| in this document with the homeowner. However, | | | | you'll be paying escrow fees whether or not |
| when the contract is drawn up, there may have | | | | the deal goes through, so keep this in mind. |
| been extra things thrown in, and if you don't | | | | |
| agree with these terms, you need to fix the | | | | 7. Do a final walk-through of the house. |
| contract before you sign. If you just skim | | | | |
| the document, you could miss things that come | | | | Before you transfer the title, it is |
| back to haunt you later. | | | | important to look at the house once again to |
| | | | make sure that there haven't been any recent |
| 2. Get a home inspection. | | | | damages. If there have, you should ask the |
| | | | homeowner for information about how it |
| Before you purchase the home, you should get | | | | occurred. You should also ask for a credit or |
| a home inspection. This home inspection will | | | | that the damages are repaired before you |
| uncover any problems that might be present, | | | | officially purchase the house. |
| even if they aren't easily spotted by the | | | | |
| naked eye. Home inspections might be a bit | | | | 8. Make any corrections you need to the |
| pricey, starting at around $500, but they are | | | | contract. |
| well worth the money. If you're required to | | | | |
| sign the agreement of sale before you can get | | | | Before signing, it is important to make a new |
| the home inspection done, it should have a | | | | copy of the agreement of sale and reread it |
| clause that releases you from the contract if | | | | once again. Even if you hand-write a note on |
| problems are found with the home. | | | | the copy, you should reread everything to |
| | | | ensure that it is exactly what you need. If |
| 3. Make sure that there is a mortgage clause. | | | | there are any discrepancies at all, they |
| | | | could hurt you later. |
| Sometimes, even if you think you have good | | | | |
| credit, it can be hard to get approved for a | | | | 9. Meet with mortgage lenders. |
| mortgage. If you haven't been pre-approved, | | | | |
| you might find that you can't get a loan in | | | | If you have not already been pre-approved for |
| the amount you need, and if this is the case, | | | | a mortgage, now's the time to start booking |
| there should be a way out of the contract. | | | | for one! Take some time to clean up your |
| This clause should specify an interest rate. | | | | finances, and then begin applying for a |
| Otherwise, you could be forced to get a | | | | mortgage. Make sure that you closely compare |
| mortgage and a very, very high interest rate | | | | interest rates, terms, and other conditions |
| just to fulfill the contract. | | | | offered to you. Every deal will be slightly |
| | | | different. |
| 4. Determine who will pay for utilities and | | | | |
| other related expenses while the deal is in | | | | 10. Begin budgeting! |
| escrow. | | | | |
| | | | Lastly, now is the time to really start |
| If this is not in your agreement of sale, you | | | | putting money away for your mortgage payments |
| need to talk to the homeowner about it. They | | | | every month. You do not want to fall into a |
| might assume that you're paying for all or | | | | foreclosure situation! Pump up your savings |
| some of these costs. In reality, however, | | | | by sticking as much as possible in the bank |
| these things should be at their expense until | | | | out of every paycheck. That way, when the |
| the title is transferred. Everyone needs to | | | | deal officially goes through, you'll be ready |
| be on the same page. | | | | to make payments every month. |
| | | | |