Lomeo Law Offices              

1. Do I need to have a sales agreement?  Yes, any real estate agreement should be in writing, explaining the property address, sale price and any contingencies.  A written agreement will prevent the Seller from selling the property to another party.

2. How much money should I give as a good faith deposit?  Usually a buyer will give a small amount relative to the agreed sale price.  For example,  a home selling for $100,000, should not have a deposit greater than $1,000.  But, a home selling for $300,000 should have a deposit not less than $2,500.  However, the buyer and seller can agree on any amount, including not having a deposit. 

3. Should I have a contingency in the agreement for a mortgage approval?  Yes, if you need to have a mortgage loan to purchase the property, the agreement should be conditioned upon you receiving the mortgage loan.  Even if you think you will have no trouble obtaining a mortgage loan, it is too risky to sign an agreement without this contingency.   An agreement without this contingency means you are buying the home with "cash".

4. Are there any other contingencies I should include in my sales agreement?  Yes.  A contingency for a home inspection is one of the most important.  This will permit you to "back-out" of the agreement if the home has physical defects.  Also, if you have another home to sell, you should make this a contingency on your new home sales agreement.  Otherwise, you may own two homes at the same time.

CONTACT US IF YOU HAVE ANY FURTHER QUESTIONS.  WE ARE HERE TO HELP YOU!

QUESTION ABOUT MORTGAGE FINANCING.

1.  Should I speak to a mortgage professional before searching for a home?  Yes, this will help you avoid looking at homes that you can't afford.  Also, most sellers will not enter into an agreement unless they know you can obtain financing.

2. Who should I call for a mortgage loan?  This is probably the most tricky part of the process, trying to determine which mortgage lender is best for you.  It is best to do an internet search to find lenders in your area.  Once you locate a number of lenders, call them to discuss their programs.  Ask them for references.  Remember, you will be dealing with the lender in one of the most stressful times of your life, so you want to make sure it is a company that is looking out for your interest.

3. What is Seller Financing?  Seller financing is when the Seller is the mortgage lender.  This means that the Seller will not receive his full sale price until the buyer pays the Seller's mortgage in full.  

4. Is it a good idea to call Mr. Lomeo before looking for a mortgage professional?  Yes.  Our office will help you narrow your choices, and explain in detail how to compare lenders.  Reviewing mortgage costs sheets is almost like learning a new language, so it can be a little confusing.  We work for you and do not have arrangements with any lenders.  We have no incentive to favor one lender over another.  This is unusual in today's market, since most closing attorneys and title companies have financial arrangements with lenders.  Call us for a free consultation.