TEXAS
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A copy or fax of a pre-qualification letter for the amount of the offer from your lender on their letter head and signed by a loan officer is required before we can show a property and make an offer. If paying cash, a copy of a statement of funds is required. In any case, the amount stated or shown needs to be at least the amount of the offer. A $1000 earnest money deposit for property listed at $50,000 or more or a $500 deposit for property less than $50,000 is required for HUD-owned properties. It must be a cashier's check or money order. HUD deposits must be made out to "HUD." For other properties, an earnest money deposit is normally one percent of the offer and will be made out to the title company where it is held until closing. The amount of the deposit may vary and is usually set by the owner. Sellers normally require that the earnest money be in hand prior to presenting an offer. Your earnest money deposit will be applied to your closing costs -- which for buyers who finance typically includes establishing an escrow account for prepaid items such as property taxes and homeowners insurance; costs involving the purchase of your loan such as a loan origination fee; and other processing, document preparation or attorney fees, appraisal if needed, survey if needed. Closing costs may run between 4 and 5% of the offer amount unless paying cash which in that case could be as little as 0 to 1 percent because escrow accounts and lender fees are not required. You may ask the seller to pay for some of your closing costs. Remember that sellers compare offers according to the net proceeds received after all costs are taken out, including any items or closing costs you ask them (and they agree) to pay for. The seller normally pays all sales commissions. Please NOTE: If you fail to close, you may lose all, a portion, or none of your earnest money deposit. It will depend on the seller and the circumstances, and we will give you all those details prior to submitting your offer. If your offer is not accepted, your earnest money deposit is returned and all paperwork is cancelled. |
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