Babcock Ranch

A pre-approval is a thorough review by a mortgage broker or lender of your credit, financials and income. It establishes your home price maximum and helps determine your payment ceiling. Pre-approval is essential because most sellers require it before considering your offer. Additionally, we require it to ensure you’re looking at homes that fit your budget.

Your mortgage payment consists of:

• Principal and Interest: The main loan amount and interest charged by the lender.
• Escrow for Taxes and Insurance: Funds set aside to cover property taxes and homeowner’s insurance.
  Association dues and condo fees are typically paid separately.

Earnest money, also known as an escrow deposit, is a “good faith” deposit made by the buyer to demonstrate their serious intent to proceed with the purchase. It binds the contract.

The home inspection period, which is negotiable, typically lasts between 1 and 15 days. It allows a licensed and insured inspector to thoroughly examine the home and provide an itemized report on its condition. This report helps you decide whether to move forward with the purchase.
Important: Do not send the inspection report to the lender!

The appraisal provides the lender with an unbiased valuation of the property from a third party. This process ensures the home’s value aligns with the loan amount. The buyer pays for the appraisal, which typically costs $500 to $900, depending on the size of the home or property, and it is paid prior to the appraisal being conducted.