What is a pre-approval letter and how important is it?

A pre-approval letter is a document from a lender that indicates how much money a buyer can borrow to purchase a property. It is important because it helps the buyer understand their budget and shows sellers that they are serious about buying. It also gives the buyer an advantage in a competitive market because they can act quickly to make an offer on a property.

What are closing costs and who pays them?

Closing costs are fees associated with the purchase or sale of a property that are due at the close of escrow. They can include things like title insurance, appraisal fees, and loan origination fees. In most cases, the buyer is responsible for paying the closing costs, however, some fees may be negotiable depending on the terms of the sale.

What is a home inspection and why is it important?

A home inspection is an assessment of a property's condition by a professional inspector. It is important because it can uncover issues with the property that are not visible to the naked eye, such as leaks, damage to the foundation, or faulty wiring. This information can help buyers negotiate repairs or a lower price for the property and can prevent unexpected costs or safety hazards down the line.

What is a title search and why is it important?

A title search is an examination of public records to ensure that a property's title is clear of any liens, judgments, or other claims that would prevent the buyer from taking full ownership. It is important because it protects the buyer from future legal issues or unexpected expenses related to the property's ownership.

What is earnest money and when is it due?

Earnest money is a deposit made by the buyer to show that they are serious about purchasing a property. It is typically due within a few days of a seller accepting an offer and is held in an escrow account until the close of escrow. The amount of earnest money can vary depending on the terms of the sale, but it is usually around 1-3% of the purchase price.