HOW MUCH MONEY DO I NEED TO MAKE AN OFFER?

The REALTOR® you hire will work diligently to negotiate the contract terms you want and/or need.  Below are some up-front expenses you should prepare for:

PLEASE NOTE:  The figures listed below are ESTIMATES and can be negotiated between a Buyer and a Seller.

TO MAKE AN OFFER YOU MAY NEED THE FOLLOWING:
(Consult your REALTOR® for the most beneficial terms that fit your specific needs)

TYPE AMOUNT DESCRIPTION WHEN TO PAY
Earnest Money $500 up to 1% of the Purchase Price NEGOTIABLE. Earnest Money is offered in “good faith” to show seriousness in an offer.

Your Earnest Money deposit may be applied towards your down payment on closing day.

At time of offer. This is not deposited until after your offer is accepted.

 

Option Fee $10/Day NEGOTIABLE. An Option Fee is payable to a seller for the right to terminate a contract for any reason during an Option Period. An Option Period can be any number of days. Five to ten days is customary.

This can be refunded to you on closing day.

At time of offer. This is not deposited until after your offer is accepted.

 

Home Inspection $285 Not mandatory, but highly recommended. During an option period (usually within the first few days after the purchase contract is executed). Some inspectors may bill at closing. Call to inquire.
WDI Inspection $75 May or may not be required by your lender. Call to inquire. WDI: “Wood Destroying Insect” – this could mean termites and carpenter ants. During an option period (usually within the first few days after the purchase contract is executed). Some inspectors may bill at closing. Call to inquire.
Appraisal* $475 Payable to your lender. Shortly after the Option Period Expires. Maybe within 5 to 7 days after the Option Period.
TOTAL UPFRONT EXPENSES** $1,435 (+/-)

*Appraisal: An appraisal is arranged my the mortgage lender.  An Appraiser offers an opinion of value (fair market value) of the home you are trying to buy.  A home inspector and an Appraiser are two different inspectors.

The Appraisal Report is used by the lender to make sure they are not lending more than what the home is worth.  Some lenders collect the Appraisal Fee upfront, before ordering the Appraisal.

**Total Upfront Expenses – Money you should have ready when making an offer.
(using the minimum figures shown above): $1435.00
 (estimate)

NOTE: If you qualify for Down Payment and Closing Cost assistance, the $1435 estimate might be all you need to buy your new home.  

CLOSING COSTS AND PREPAIDS (this is separate from your Down Payment): For buyers who will not use closing costs and/or down payment assistance, you may need to pay part or all of the following ON CLOSING DAY:

  • Down Payment*
  • Closing Costs*
  • Pre-Paid Items*

*Click HERE to learn about Down Payments, Closing Costs and Prepaids.

HELPFUL TIP… if you don’t qualify for closing cost assistance, DON’T WORRY! We can STILL help get some or all of your closing costs and/or Prepaids covered by the Seller (or Builder)!  ASK ME HOW.

———
“Coaching First-Time Texas Home Buyers and Sellers.” 

If you still have questions about the home buying process, I am at your service SEVEN DAYS A WEEK!  I keep my phone on after 5:00 pm to help accommodate your busy work schedule.  I’m “on-call”, even after everyone else clocks out!

Val-A-Homes

METRO REALTY | Val J Aranda, REALTOR®

4007 McCullough Ave, Suite #477
San Antonio, TX 78212 | Call/Text Val: 210-378-5987

www.Val-A-Homes.com

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