Once we have found you the perfect home, it’s time to make an offer. I will draw up a sales contract for you, and we will discuss various contingencies in the contract such as home inspection, appraisal, and financing. This is also when you write a check for the Earnest Money Deposit (EMD), typically 1% of the sale price. In a hot market where homes sell very quickly, you may be more likely to win a contract with a larger EMD, around 2-3%. Once the contract is ready, I will submit the contract to the listing agent, along with your lender’s pre-approval letter and EMD.
Once the seller has accepted and signed the contract, we have what is called a ratified contract and your EMD check is deposited into the title company’s escrow account. I then send the ratified contract to your selected lender and title company which sets in motion the lending and title processes. A mortgage application must be submitted to your lender within seven days of ratification to ensure compliance with the financing contingency in the contract.