Prior to making an offer:
- Being able to find your perfect home or loft is only part of the process. Now we have to make an offer!
- Before writing an offer, buyers should first be pre-approved by a reputable lender.
- With a pre-approval letter, the buyer will be able to show that he/or she is qualified to purchase a home in the desired price range. It will provide the seller with information that he will need in order to do business with the buyer.
- After reviewing your income, credit and assets, the lender will provide the buyer with a preapproval letter. This will be submitted along with the offer to purchase.
- Sellers will also ask for a proof of funds with the offer. This can be a bank statement. The bank statement will show a balance that covers the down payment the buyer plans to make.
- It is also important to make sure that 3 percent of the purchase price is liquid and that it will be ready to be delivered as a deposit if the offer is accepted.
- The earnest money deposit is part of your own down payment and will be held by the escrow company.The escrow company is a neutral third party licensed by the state of California to manage the transfer of funds and facilitate a smooth transaction.
- If the buyer does not proceed with the transaction due to inspection or loan issues and you cancel within the agreed upon period, the earnest money deposit is returned to you.
- With a preapproval letter and deposit ready to go, now we can write up the offer!