First Time Home Buying STEP 5: ITEMS COVERED IN PURCHASE CONTRACT

STEP 5: ITEMS COVERED IN PURCHASE CONTRACT

This list VARIES widely by region and state.  Depending on the county, transaction fees and closing costs are customarily split between buyers and sellers.

Major items in the sales contract

• Sale price
• Property address and APN (tax #)
• Amount of initial deposit
• Terms of mortgage financing
• Closing date
• Which party will pay which closing costs
• Contigencies and conditions
• Transfer and recording of deed
• List of fixtures remaining in home
• Home warranty
• Repairs required of the seller, if any
• Real estate agent representation
• Escrow closing date
• Details of escrow transaction

Major closing costs for buyers

• Loan underwriting fees
• Credit report fees
• Appraisal fee
• Inspection fees (building inspection, other inspections)
• Insurance premiums
• Pro-rated interest on loan
• Pro-rated county property taxes
• Escrow reserves (refundable pad)
• Notary & Legal services
• Escrow services
• Recording services and Title-related services

Note:  Real estate commissions are usually paid by the seller.

SEE ALL OF THE STEPS HERE (click on the links below)

1. PREPARE FOR HOME OWNERSHIP

2. GET READY TO SHOP FOR HOUSES

3. FIND A HOUSE

4. MAKE YOUR OFFER

5. ITEMS COVERED IN PURCHASE CONTRACT

6. NEGOTIATIONS

7. DURING ESCROW

8. CLOSING ESCROW

9. YOUR NEW HOME

Are you ready?  Let's go! Take your first STEP today towards making your DREAM a reality!

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Regina P. Brown
Broker, Realtor®, e-Pro
Author of eBook "Stop Foreclosure Fast: Solutions to Save your House"

Text copyright © 2009 R.P. Brown, All Rights Reserved