Congratulations! You are ready to take a big step into the world of adulthood and independence by purchasing your own home. This step can feel exhilarating as you imagine all the ways that you will make your house a reflection of you and your comforts. You may scour websites, speak with real estate agents or drive around your local neighborhoods looking for that perfect home waiting to be yours.
When you find the right one, you may simply want to hand over your down payment and get the ball rolling on officially owning a home. However, at this point, it may prove wise to tap the breaks on your enthusiasm and think logically. Purchasing a home is a substantial financial and personal decision, and you certainly do not want to end up being taken advantage of. Therefore, it may prove wise to consider creating a real estate contract.
Why do you need a contract?
Whenever an exchange of money takes place, having an agreement between the participating parties can help prevent confusion and conflict. The same idea goes into having a real estate contract. You can use this document to detail various aspects of the transaction, and, in turn, feel more comfortable with the step you are about to take.
What should you include in a contract?
Depending on the specific conditions of your purchase, a variety of terms may prove useful. However, some common information you may want to consider putting in your agreement includes:
- Terms regarding your mortgage loan: Obtaining a mortgage loan commonly takes place during this type of real estate transaction. If you want to obtain a certain interest rate, payment duration or other specific detail relating to your loan, you may want to state in your purchase offer that these details may play a role in your ability to move forward with the transaction.
- Closing cost agreements: Individuals often use closing costs as a negotiation tool during home purchases. Therefore, it may benefit you to include the details of who will pay these costs in your contract.
- Interior décor: In some cases, a home seller may state that certain decor or appliances will remain in the home in order to make the property seem more appealing. However, you may want to ensure that these details go into your contract to prevent the seller from potentially backing out on that agreement and taking the items after the sale finishes.
These few examples may not seem important, but any time an agreement takes place, having the most minute details on paper can help prevent conflicts. If you would like to move forward with protecting yourself and your financial interests during a real estate transaction, you may want to find out more information from local legal resources about creating an enforceable contract.