Down Payment is all about being ready for earnest money when you make an offer to buy. It is the fourth step in the Pre-Showings process.
The Down Payment process is shown below.
You will need at least the Earnest Money when you make your offer. You will need the Down Payment and Closing Costs for closing.
Discuss the timing with your Real Estate Broker and/or Lender if you have any concerns.
Take a moment to determine where your Cash Reserves are in cash you need money to maintain a property.
Mark this task complete once done.
If you're not doing a Partnership, you can skip this step, but it may also be helpful for you to think about the sources of your Cash Reserves are as well.
Mark this task complete once you've determined how much Cash Reserves you should have with your Partnership.
Mark this task complete once done or if you're not doing this.
- You need to disclose if you have this when we make an offer, so plan for that in advance of making an offer
- You’ll need the down payment and source where the funds came from for most lenders, so plan ahead and communicate with your lender about it
- Legacy Nomads – Talk to your lender early and see what you might need to do if you plan to use/give a gift for a down payment
Once you’ve lined up your Down Payment, you can move on to being prepared for writing an offer by looking over a Mock Contract.
IMPORTANT NOTE: This checklist is based on what I personally use with clients in Northern Colorado. Please rely on your local real estate agent for how it works in your local real estate market. This process will definitely vary in different States.