It is standard practice to make a purchase offer contingent upon obtaining a mortgage. Because of this contingency, the seller will want the details of your financing plan included in the offer.
Down Payment In the purchase offer, we will include the down payment amount you will apply toward the purchase. This will give the seller further evidence of your qualifications to secure a mortgage.
Pre-Approval letter Within the purchase offer, we must provide to the seller and the seller's agent, a pre approval letter from either your lender or mortgage broker. This shows to the seller that your are a serious buyer and have already lined up your financing.
Security Deposit/Good faith deposit A deposit of 1% to 3% of the offer price must also be given to the listing agent as a sign of good faith. If your offer is accepted, your deposit check will deposited in an escrow account and will be applied to your closing costs and/or your down payment or in some circumstances will be refunded back to you at close of escrow. NOTE: this deposit is forfeited if you back out of the deal for unsubstantiated reasons.