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Option period: What is it and how does it affect the purchase and sale of homes

What is an option period? An Option Period is written into a real estate contract to give the buyer a specific number of days in which they can rescind the contract and receive a refund of their security deposit. Its goal is to give the buyer time to learn more about the home through independent inspections and appraisals, negotiate repairs and other elements of the contract, and obtain approval for financing if applying for a mortgage . The buyers will pay the option fee to the seller that is not refundable, it’s the charge for review period and typically ranges from 100$ to 200$. The option period usually lasts from 1 to 10 days. It begins the day after the acquisition contract is signed and ends at 5 p.m. local time on the specified end date. During the Option Period, the property is labeled as a "pending option" (OP). If the customer needs more time, they will potentially negotiate with the vendor to increase the option Period for extra days. The Option Period all

Steps in buying your first home

Understand a way to find and finance the right home for you Buying a home takes a great deal of your time and energy, but these 10 steps can help make the house buying process manageable and make the most effective possible decisions. 1. Start your research early As soon as you'll be able to, start reading websites, newspapers, and magazines that have property listings. Take note of the private houses you are interested in and see how long they stay on the market. Also, be aware of any changes in sales prices. This will give you the idea of most housing trends in the specific area. 2. Determine how much house you can afford Lenders in general recommends that individuals should look for homes that will cost not more than 3 to 5 times of their annual income, if the home buyers attempt to make 20% down payment and have moderate amount of debt. But you must make this determination based on your own financial situation . 3. Get Prequalified and Pre-Approved for Your Mortga

Pre-approved financing - avoid losing it with a pre-purchase building inspection

Buying a home can be stressful at best. It often feels like a lot of things happen at once, it's hard to have all the ducks lined up and buy the home you really want. Therefore, thinking about a building inspection before purchase may not be the first thing on your mind. However, my advice to both new home buyers and seasoned investors is to get pre-approved financing as early as possible in the buying process and to make sure that any home you want to buy is covered by that financing. with a building inspection prior to purchase. The last thing you want is to fall in love with a house, put the time and energy into making an offer, and then lose it because you can't get the proper financing on time or because the house is not covered by your pre-approval. What is pre-approval? When we talk about "getting pre-approved", it is basically a guarantee from your bank that they will loan you money. There are two ways: initial pre-approval and specific pre-approval.