Typically fixed-rate mortgages, conventional loans tend to have stricter requirements for approval. You will need to be able to provide a higher down payment, have a high credit score and low debt-to-income ratio. These loans are usually less costly than other loans that are guaranteed by the federal government. These tend to be the most common loans applied for by the average American.

FHA Loans are provided by the Federal Housing Administration as a program for American’s seeking home loans with lower down payment options and lower requirements for approval. FHA loans tend to be great for first-time homebuyers due to the minimum down payment amount of just 3.5%. However, FHA borrowers must pay a mortgage insurance premium that is rolled into their monthly mortgage payments. This is to protect the lender in case the borrower is unable to meet their mortgage obligations.

VA Loans are another government guaranteed loan available to Veterans. Usually these loans can be approved without a down payment requirement. You must request eligibility from the Department of Veterans Affairs and obtain a certificate of eligibility to be considered for this loan type by lenders. Many local programs may offer similar assistance as well.

The offered purchase price of the property will be determined by you and your agent based on the current market value and circumstances surrounding the property and seller’s situation.

The closing date is typically within 30 days of offer acceptance. You can discuss with your agent on your exact needs for scheduling your closing. Often times possession will take place at the time of closing, but special circumstances can cause possession to take place at a later date. The possession date will be stipulated on your contract.

Earnest money is customarily around 1% of the total purchase price. Earnest money is held by a specified holder, usually the closing attorney or agent’s brokerage. Earnest money is refundable to the buyer up until the last day of the Due Diligence period (more about that below).

Closings Costs include attorney fees, closings fees, transfer fees, and any other potential fees associated with the closing of the property. When submitting an offer, you can specify how much you would like the Seller to cover for Closing Costs. Typically closing costs will range between 3%-6% of the purchase price.

The due diligence period specified in the contract will begin upon offer acceptance. During the due diligence period it is recommended to do a full inspection of the property to become aware of any potential issues and prevent loss of earnest money in the case the contract requires termination.

Special stipulations are requirements outside the typical contract that are added by the buyer’s agent on behalf of the buyer. Examples of special stipulations include escalation clauses, requirement of appliances to stay with property, etc.

There are some situations where unique circumstances will arise. Some unique circumstances include additional contingency on the sale of buyers home, temporary occupancies, etc.