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