An important aspect of a purchase offer are the contingencies. For instance, you might make your offer contingent upon a particular event. This means you will go ahead with the offer only after that event is satisfactorily resolved. In general, there are two kinds of contingencies: financing and home inspection. A deal is frequently made contingent upon the homebuyer succeeding in getting some specified amount of financing from a lending organization. Also common is a contingency declaring the deal will only go through if the recommendations made after the home inspection are deemed satisfactory. These two contingencies are probably the most common, and both frequently appear together. If either of these two contingencies is not realized, the contract would be void. Also, it is important to mention all the inspection conditions in the purchase offer.
BUYING STEP #9: Put Money in Escrow
While purchasing a home, the buyer is expected to put earnest money on the contract. The earnest money is held generally by the closing agent the buyer chooses. The earnest money is deposited into the closing agent's escrow account. This makes the contract binding and subsequently moves it through closing. Escrow is the period between the time a purchase offer is made on a property and the time when that property’s title is transferred to the new owner. The initial deposit amount collected as part of the escrow is also referred to as good faith earnest money. This is the payment that will follow the home purchase process. How much is to be deposited in the escrow will depend on the terms in the purchase offer.
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