10 Greatest Fears of First Time Home Buyers: Part 6

6.     What if I put down a deposit on a house and then change my mind after signing a contract?

Don’t sign an offer until you feel certain that you want the house, for exactly what you have written in the offer! Remember that if the seller signs the last page under, "Accepted as Written" it means that you’ve got a deal! That should be a very happy moment, not a time to think about looking at other houses! If there are some major concerns you have about the property at the time you write an offer, you can have your agent put language into the contract that specifies certain contingencies which must be met in order to complete the deal. Home inspections are also an excellent resource for more in-depth information about a home, and even though you will still have to pay your inspector for his work, if something major comes up and the seller’s won’t work with you to overcome it, you can halt the deal at that time! Inspections must be requested at the time you write an offer, so if you and your agent don’t put them in there, don’t expect the seller to do anything in addition to that which is specified in the offer you have written.

10 Greatest Fears of First Time Home Buyers: Part 5

5.     What if I start house-hunting and then learn I’m a few thousand dollars short of a down payment? Are all down payment requirements alike?

Once again, there are still many mortgage programs out there. All of them are different. Many low down-payment mortgage programs request the seller pay your closing and pre-paid costs. Some even have the seller "gift" your down payment back to you at close. Lenders are now required to provide a "good faith estimate" which will show all the costs for your specific loan. A good lender will make sure that you fully understand it.  You should fully understand your expenses before you make an offer on a house. There are also additional expenses which you will incur from the day you write an offer to the time you close.  Expenses such as the earnest deposit check, your home inspections, your appraisal, and your homeowners’ insurance are items to discuss in addition to your good faith estimate. A good Realtor will explain all of these anticipated expenses early on in the process. Some of these up-front expenses can be deferred or even reimbursed at close.