After you have narrowed down your search to one property, it’s time to make an offer. This is where your real estate agent will carry the load and where you will need your pre-approval letter to go with an earnest money deposit. Your offer should be contingent on an appraisal and on your financing. This means that the property must appraise for at least the agreed-upon sales price, or you don’t have to purchase the property. This also means that if you were honest on your application and your loan doesn’t get approved through no fault of your own, you’ll get your deposit back. Generally, your deposit is a “good faith” deposit, which takes the property off the market for you. Typically, 5% to 10% of the purchase price is a common deposit amount for some properties and it’s given to your agent to put in an escrow account until settlement. At that time, the title company disperses it to the seller. An offer on a multifamily property usually has more contingencies than an offer on a single-family home because you’ll need to complete due diligence on the property’s rental history. This due diligence is a set time period, often 15 days, that the buyers will receive the rent roll, tenant payment history, utility bills and other reasonable documents that they can request and examine before deciding if they want to continue with their offer. #RealEstate #Contract #Underwriting
Watch this episode on YouTube: https://www.youtube.com/watch?v=F95wPPn2rrw&t=3s
