Are you ready to buy a home? From pre-qualification, appraisal and contract, to closing your mortgage, here you can find everything that happens during the financing process of each sales agreement.
Here you will find:
- What is a sales agreement?
- Sales agreement components
What is a sales agreement?
A sales agreement contract is an agreement signed between you and the seller of the property. It establishes the terms of this sales agreement. Here, the terms are established, and an agreed price is reached by both parties.
Essential elements during the financing process of a sales agreement
- Pre-qualification: Before looking for a property, this document allows you to identify the loan amount you are eligible for. This way you can focus on properties that are within your budget. You can fil your pre-qualification information at any FirstMortgage branch.
- Appraisal: This serves as an instrument to better negotiate the price of a property at the time of making improvements to the property, buying, refinancing or selling. We compare similar sales and competitive market lists where the residence is located.
- Credit score: One of the most influential factors when figuring out the kind of loan a financial institution will give you, the interest rate given, and the guarantees required as part of the transaction is the credit score. Your score will fluctuate between 300 and 850 points. The higher your score, the better your credit is and the better the loan conditions you will get. You can request a free credit report once a year at www.annualcreditreport.com.
- Sales agreement contract: The document between the buyer and the seller of the property in which the price and transaction terms are agreed upon. It is important to include the date and signature of all parties involved in this document for validity.
- Loan application: Documents that officially begin the mortgage process. To determine which loan suits you, it is important that you provide all the documentation and information in your application. Sales agreement cases should include the contract and evidence of the option given (cancelled check or “escrow” with the seller or “realtor”).
- Loan estimate: Offers a clear estimate of all the terms of the transaction proposed by the bank. This document helps you determine if you would like to continue with the transaction. The bank will return it to you in 3 business days after you present your loan application.
- Closing disclosure: Offers clear details regarding the loan charges for you to better understand the costs of the transaction. You will receive your copy at least 3 business days before closure.
- Closing costs: In the case of a sales agreement, the closing costs are generally not part of the loan and will depend on the loan amount. Get to know the costs incurred for the owner and for the buyer here:
Unless agreed otherwise, the seller pays:
- The Real Estate agent’s commission (if applicable)
- The sales agreement fees
- Original sales agreement deed stamps
- Deed cancelation fees, stamps and vouchers
Unless agreed otherwise, the buyer pays:
- Deed stamps and vouchers
- Certified deed copy stamps and vouchers
- Title study
- Plot Plan
- Flood certification
- Credit report
- Title policy
- Owner’s policy
- Hazard policy
- Origination, discount fees in accordance with the offer or interest selected
We are here to provide you with all the information you need. We know how hard the process of buying your new home can seem. Visit us so we can guide you through the many financing options, the assistance available, and the steps you should follow to make the process toward buying your new home much easier. Contact us and make your appointment today!