Editing 1course Real Estate (section)

==== What Sellers Want to See in a Purchase Contract ====
When you submit a purchase contract for a property, sellers want to see proof that you have the financial means to close the deal. Here’s what you need to include:

# '''Pre-Approval Letter or Proof of Funds:'''
#* '''Pre-Approval Letter:''' For financed deals, include a pre-approval letter from your lender. This letter indicates that you’ve been pre-approved for a loan up to a certain amount, demonstrating your ability to secure financing.
#* '''Proof of Funds:''' For cash deals, include proof of funds, such as bank statements or a letter from your financial institution. This shows the seller that you have the necessary funds available to complete the purchase.
# '''Earnest Money Deposit:'''
#* '''Overview:''' An earnest money deposit is a good faith deposit that shows you’re serious about purchasing the property. It’s typically 1-2% of the purchase price and is held in escrow until closing.
#* '''Benefits:''' Demonstrates your commitment and gives the seller confidence in your offer.
#* '''Example:''' For a $250,000 property, you might include an earnest money deposit of $2,500 to $5,000.
# '''Contingency Clauses:'''
#* '''Overview:''' Contingency clauses protect you as the buyer and outline conditions that must be met for the sale to proceed. Common contingencies include financing, inspection, and appraisal contingencies.
#* '''Benefits:''' Provides a way to back out of the deal if certain conditions aren’t met without losing your earnest money deposit.
#* '''Example:''' A financing contingency might state that the sale is contingent upon securing a mortgage loan at a specified interest rate within a certain timeframe.