| As a home buyer, you will be signing many | | | | behalf (depending upon what you agreed to in |
| documents. The purchase contract outlines the | | | | your purchase contract). |
| basic terms and conditions of your agreement to | | | | You can expect to spend about 3-6% of the |
| buy the property. It includes the sale price, | | | | purchase price on closing costs. Below are the |
| property description, deposit amount, mortgage | | | | major items you pay pay at the close of escrow: |
| financing, and any contingencies. Your Realtor will | | | | Major closing costs |
| help walk you through the negotiation process. | | | | - Loan underwriting fees |
| After the initial offer, you may receive a counter | | | | - Credit report fees |
| offer. It will change some of the price and/or | | | | - Appraisal fee |
| terms of your original offer. Below are checklists | | | | - Inspection fees (building inspection, other |
| of the major items included in the contract. | | | | inspections) |
| Major items in sales contract | | | | - Insurance premiums |
| - Sale price | | | | - Pro-rated interest on loan |
| - Property address and APN (tax #) | | | | - Pro-rated county property taxes |
| - Amount of initial deposit | | | | - Escrow reserves (refundable pad) |
| - Terms of mortgage financing | | | | - Notary & Legal services |
| - Closing date | | | | - Escrow services |
| - Contigencies and conditions | | | | - Recording services and Title-related services |
| - Transfer and recording of deed | | | | - Real estate agent commissions (usually paid by |
| - List of fixtures remaining in home | | | | the seller) |
| - Repairs required of the seller, if any | | | | Remember to have a great attorney to help you |
| - Real estate agent representation | | | | review your contract before signing. And have |
| - Details of escrow transaction | | | | your attorney review your loan documents and |
| Included in your contract are items you will have | | | | help explain them to you before signing. If you |
| to pay for. Some items you will pay in cash (as a | | | | can't afford attorney fees, consider enrolling in a |
| money order or cashier's check from your bank), | | | | pre-paid legal plan membership for a low cost |
| some items may be paid through your mortgage | | | | lawyer service. |
| loan, and some items the seller may pay on your | | | | |