Prior to Making an Offer

Prior to making an offer:

  1. Being able to find your perfect home or loft is only part of the process. Now we have to make an offer!
  2. Before writing an offer, buyers should first be pre-approved by a reputable lender.
  1. 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.
  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. With a preapproval letter and deposit ready to go, now we can write up the offer!