BUY THE RIGHT HOUSE AT THE RIGHT PRICE

1. Full Name

2. Income

3. Social Security Number to obtain a credit report

4. Property address

5. The estimate of the property value

6. Mortgage Loan Amount you are seeking to borrow

Appraisal Contingency

After your offer is accepted, the lender you choose will ask for an appraisal from a third party. This is to make sure that you are not paying too much for the home. An appraisal contingency is in the contract so that if the appraised value of the home comes back lower than what you agreed to pay, you have a certain number of days to back out of the deal, continue with it as planned, or renegotiate with the seller to bring the price down to match the appraisal value.

Financing (aka “Mortgage”) Contingency

A financing contingency protects you if you can't get a loan to buy the home. If this happens, then you can back out of the contract and get your earnest money back. You have time until a certain date to get a loan for the home purchase. If you don't get a loan by that date, then you can terminate the contract or ask for an extension.

House Sale Contingency

If you're buying your first home, a house sale contingency will not apply to you. This is important because it means that if you sell your current home and purchase a new one, you will have a set amount of time to do this before you can finance the new one. 

This may be annoying for sellers because they are forced to wait for the outcome of the contingency. If the seller is unable to sell their home for at least the asking price, they are protected by this contingency and have until a specified date to back out of the contract without any legal consequences.

Inspection Contingency

After your offer is accepted, you will need to have a home inspection. This will help you find out if the house has any big problems. If it does, you might be able to renegotiate or withdraw your offer without any legal problems. There will also be a final walkthrough before you close the deal. This is where you will check to make sure that the seller fixed any damages that were found during the inspection. Once all of this is done, it's time to get financing for the house.

Promissory Note

A promissory note is a document that shows you agreed to the loan terms offered by your lender. This document also states that you agree to repay the amount you borrowed, plus the stated interest.

Mortgage of Deed of Trust

This document is a security measure that will require your signature when you close on the loan. This document pledges your home as collateral for the loan.

Deed (for Sellers)

The deed is a document that shows that the seller has transferred ownership of the property to you. The money from your lender will be transferred to the seller, and they will sign the deed.

Affidavits and Declarations

These documents are important and legally binding. They spell out the financial obligation you are taking on and your rights as a homeowner. Make sure you read them carefully and ask questions if you don't understand something.