Making
Decisions About Your Purchase
Below
are some of the items you'll need to consider and how
the purchase process works:
How Much Should You Offer To Pay?
Should you offer to pay the seller's
asking price or a lower one? Consider such factors
as: How long has the house been on the market? Is
its price reasonable? Your realtor can show you comparable
home sales (comps) for similar properties in the neighborhood
to help you. How competitive is the area's home buying
market? If the seller is offering an assumable mortgage
or financing, how much is it worth to you?
What Happens To The Earnest Money?
A "deposit" is made, in
part, to show the seller your seriousness about buying.
Your realtor will inform you of the amount that is
usually given in your area. The seller doesn't actually
receive the earnest money. A third party, Fidelity
National Title - holds the amount in a special trust
- or escrow account until the sale is closed or the
contract is broken.
If you go through with the sale,
the money is applied to your down payment or other closing
costs. If you fail to buy the house, the seller has
the right to keep the earnest money. However, you can
get your money back until the point at which you are
notified that the seller has accepted your offer. And
if the seller fails to fulfill his/her obligations,
the money is yours.
How Does the Seller Prove The
"Title" Is Clear?
A "title" spells out who
has the right to ownership of a property. It is said
to be "clear" if there are no substantial
claims or liens (such as a mortgage) against it. A
standard contract asks you, in essence, how you want
the seller to show you that he or she owns the property
and that the "title" has no claims against
it that would prevent transfer to you.
A "title search" is done
by Fidelity National Title and an Owner's Policy of
Title Insurance is issued. In order to issue this
insurance policy, which protects you against losses
that come from claims against the title, Fidelity
National Title first searches the title. Because you
are insured (usually for the sales price), the owner's
insurance provides the most protection.
An Abstract of Title (Title Report)
is prepared showing a brief history of the ownership
and any legal documents that affect its title
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