4 things you need to know before signing a purchase contract

Hooray! You've found your dream home! It may have taken a few days, or you may have been searching for months, but you've finally found it! Time to put the ink on the paper and start getting ready to move in right?! Yes, well kind of. There are a few things you should be aware of before you start to commit to this contract.

First, do you have your pre-approval and/or pre-qualification letter from a reputable lender? With today's technology, it's very easy to go online fill out a quick survey and *BAM* "You're Approved" for any vast range of money loans. Be careful with these quick online approvals, as some do not fully evaluate all the factors that go into home loans. It's best the visit with a reputable, established company and make sure you're truly approved for the amount prior to writing a contract. There is nothing worse than spending money on inspections and escrows just to find out your lender was a little over zealous with their initial approval amount, and you may not be able to afford the home. And, don't be afraid to "shop around" and make sure you find the right lender for you!

Second, how much of a down payment do you have, or do you qualify for using a type of financing that requires limited or no down payment? These are questions you will need to go over with your potential mortgage lender. Be sure that this down payment isn't going to drain your bank account(s). If you are purchasing a home, you will more than likely need to provide an earnest money escrow (deposit) and will also need to be able to pay for any home inspections that may need to be completed.

Third, be sure you have driven to and from work, the grocery store, and any other frequented locations. If you're concerned about schools and/or safety, check the city/county website for school info and any local police websites for crime statistics. You'll be living here, so you want to be sure you're comfortable with the area and any frequent commutes you may have.

Lastly, has your Realtor explained all the information in the contract prior to you signing? More importantly, do you understand what your are agreeing to? A good Realtor will take the time to go over each line in the contract and make sure all your questions are answered before you "sign your life away". Each contract is different and can include or exclude different things. Are your sure the fancy washer/dryer you love comes with the home? How long of an inspection period do you have? What happens to your escrow deposit if for some reason the deal falls through? These are just some of the questions you may have for your Realtor; be sure to ask any and all of your questions before you sign! I promise, there are no stupid questions, especially when it comes to such an important purchase.

As a Realtor, I love helping you find your perfect home. I hope these four tips will help you think about a few things as you're getting ready to start your home buying adventure. If you would like help finding your dream home, have any questions, or would like more information about the home buying process, please feel free to contact me!

Morgan Wiggins

Realtor, Plant City Realty, Inc

208 W Baker St, Plant City, FL 33565

(813)763-1280 Cell

(813) 764-0840 Office