Buying Real Estate in Connecticut

10.06.2009

Laura Lander 0

Know your buying power. In general your mortgage plus taxes and interest should not exceed 28 to 30 percent of your Monthly Gross Income. This is only a general guideline. Your Realtor can help you find a Mortgage Broker who will assist you in obtaining a pre-qualification letter that may strengthen your offer.

Find your home and make an offer. An offer to purchase or “binder” is submitted to the seller with a good faith deposit of 1% of the offering price. The check is deposited in an escrow account within 3 banking days of an accepted offer. The price of the home will be negotiated between the Listing and Selling Real Estate Agent. The 1% deposit is returned to the buyer if the offer does not proceed to a contract.

A number of contingencies can be contained in the offer to purchase, which must be satisfied within 7 to 10 days, such as: building, septic, radon and water inspections. Your realtor can recommend several inspectors. Inspection costs are paid by the buyer. A 21 day mortgage contingency is included if necessary.

Contracts. Real Estate contracts must be in writing. The buyer at this time should have legal representation. Seven to ten days after making an offer, the buyer will sign a contract that will generally carry only the 21 day mortgage contingency. Upon signing the contract, which is a legal document binding both parties, the buyer will submit a check for the balance of 10% of the purchase price.

Closing. Prior to closing, the buyer and the Realtor should conduct a final inspection of the property. The closing will generally take place at the office of the attorney of the seller. Usually all parties representing the buyer and seller are present. The title and possession of the property will change from the seller to buyer. Expect the closing to take at least an hour.

This information is a general guideline. Please contact your attorney or real estate agent regarding your personal situation.

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