Before you sit down to write a purchase agreement, we will sit down and fill in what is called a buyer's net sheet.
What is a Buyer's Net Sheet?
Buyer Net Sheet is a list of all of the costs associated with buying a home. Not only does this include the lender fees that were estimated on the good faith estimate, but also the local closing fees, recording fees, inspections, and other costs associated with closing. The net sheet will also reflect any credits to your side of the settlement including your earnest money, closing cost or discount point assistance from the sellers, and a tax proration to the date of the closing.
We start with the lender's good faith estimate of closing costs. Included are the following:
Loan origination fee (if applicable)
Loan commitment fee (if applicable)
First Year of Home owner's insurance
Escrow for Taxes and Insurance
Other fees that are included on the net sheet outside of the lender costs are items such as:
Prepaid interest and taxes from the date of the closing to the end of the month
Closing Service Fee
You will also have at least 2-3 credits on your side of the settlement:
Earnest money deposit
Seller's contribution to your closing costs and/or prepaid expenses
After we determine the purchase price that you would like to pay, the date that you would like to close, the amount of down payment that you are applying, and your total out of pocket, we will be able to confidently offer on the home of your dreams.
This process will be tweaked if there is a counter offer from the seller so that we know exactly what we need to make the price and terms comfortable for you for years to come.
Understanding all of the facts and figures are so important before you make an offer and during the negotiation process. Trust a professional to guide you in making your decison! Please let me know if you would like to meet with me for a free home buyer consultation and we will start your home search right away!