After much hand wringing and gnashing of teeth, we opted to build a new house. We met with both realtors on Thursday night and submitted our offer details. The builder’s agent drafted the contract, but there were so many mistakes we haven’t signed it yet. Still waiting to see if the builder’s agent submits a corrected contract for our signature before the deadline on Monday. The builder has already pulled the building permit and made the first pass at grading the lot. We have the requested 5% earnest money due at contract signing in our hands.
I haven’t purchased a home in 10 years. Thanks to the Great Recession, things are much different this time around. We have to show our $$ upfront and put some skin in the game to the tune of 10% total earnest money when the foundation is poured. We already have a a verbal approval on the loan from the mortgage broker, so that’s a relief. However, the loan may not be necessary if we can sell our current house before the new house is built.
It’s very tricky.