Don't worry, you are in good hands. I have been selling real estate since 2004 and have been in and around the DFW metro-plex since 1973.
Additionally, I have been awarded the Real Estate Negotiation Expert (RENE) certification, the premier negotiation credential in the country. The RENE is conferred by the Real Estate Business Institute (REBI) and is an official certification of the National Association of REALTORS®. I have joined an elite group of real estate professionals from around the world who have earned the RENE certification. All were required to successfully complete comprehensive coursework in negotiation and subscribe to the REALTOR® Code of Ethics.
Some sellers will actually require a qualification letter or even proof of funds for cash buyers, before we are allowed to view the home that is publicly for sale... So, it's vital that you are qualified or pre qualified for a mortgage, up front. As in right now... If you are not qualified or have not been recently qualified, please get with your mortgage professional immediately to assess your financial situation.
I only help you find the home, not the loan. But I can recommend some great lenders, once I know more about your situation and needs. I am affiliated with Great Western Home Loans, in Plano. Specifically, I work mostly with Kathy Glidwell, a senior loan officer. You can apply with her by clicking this link.
Typical closing costs for buyers range from 2-5 or more % of the total home purchase price and additionally range depending on the loan type you decide to use. Keep in mind origination fees, appraisal, notary fees, recording fees, and property taxes, expense of a new survey, home owners insurance, and mortgage insurance premiums and let's not forget inspections...
You will need typically 1% for earnest money to deposit to the title company, plus .5% of the total home purchase price for the option fee, which will allow you to inspect the home with typically a 7-10 day period all within 48 hours of the acceptance of the offer.
So keep in mind the option period allows you to change your mind for zero reason and totally terminate the contract and as long as you do it within that option period time window, you will be refunded back your earnest money. You heard me, you don't need a reason to terminate, as long as you do it within your option period...
Also understand that there is a lot of various things going on at the same time and it takes an experienced agent to have control of whatever is going on that can be controlled.
Additionally, we may or may not be able to use an existing survey. So if we cannot use the old survey, the new survey expense is typcially the buyers expense, because it's required by the lender, whom the buyer is using. Cash buyers don't have to order a survey at all, if they don't want to pay for it.
Plus you will end up paying for an appraisal with through your mortgage company, unless you're paying cash and even then you may elect to purchase an appraisal depending on the circumstances.
Should you decide to move forward past the option period and buy the home, both the option and earnest money will be credited back to you at closing. If you decide to terminate the contract past the option period, the earnest money will be up for grabs by the seller is usually the case, but not in every case. If the earnest money cannot be negotiated to be returned to either or both parties, it eventually ends up going to the great state of Texas approximately up to four years later...
The picture above is the basic flow of your future typical 30 day transaction.
Depending on what type of financing you have chosen will determine several factors in regards to potential lender required repairs, which can delay closing.
Of course everyone loves CASH, but if you aren't a cash buyer you will be presenting a loan type to the seller within your offer. Some are more appealing than others.
Conventional loans are the easiest and offer a lot of ways to get around a repair, but not in every case. The appraiser could still demand xyz to be a lender required repair.
FHA loans have more requirements than Conventional loans and if the sales prices is equal in a multiple offer situation and the seller is faced with deciding over a FHA or a Conventional loan buyer, typically the conventional loan buyer would be putting down more down payment at closing, which makes their offer appear stronger to the seller, and the conventional loan has less repair requirements, which comes up during the inspection period, but also during the appraisal period.
Comparing VA and FHA loans, VA loans have even stricter requirements and might not be as attractive as FHA or Conventional loans to most sellers. Moreover, VA buyers usually do not offer a down payment, making it difficult to compete with other offers that offer larger down payments.
Can you ask the seller to pay for your closing costs?
YES, it's a possibility. Keep in mind, some sellers will not want to do this and think that you are not as qualifed as another buyer not asking for this. Depending on your loan and your lender there are limits on how much you are able to use. If you are in contract and we put too much $ in the field for your closing costs, that the seller is paying for -for you...., anything left over goes back to the seller...
So it's super important that we are able to communicate with your loan officer and get a solid number, upfront. I can NOT guess what your closing costs are. Changing this later in the contract timeline is also a risk, in that the seller does not have to agree to change anything, once the initial contract has been signed by all parties and especially if they are going to recieve more money by not cooperating.