When shopping around for houses for sale, there’s always at least one property that would make you fall in love. But before you dream your family life in it, you have to reserve it first and potentially lock in discounts.
If you’re positive that it’s the one for you, waste no time to fill out the Reservation Agreement form to earn the exclusive right to it. Any Lancaster review would tell you that the property market isn’t an auction where the highest bidder beats the earliest bird.
To avoid losing the specific house you want to someone else, obey these rules:
To make your reservation official, you ought to pay earnest money first. It forms part of the overall down payment needed to buy the property and is non-refundable. The amount of the reservation fee depends on the cost of the property, and the developer’s down payment requirement.
Appear in Loan Counseling in Person
After making the reservation fee, you have to attend the loan counseling. Not showing up personally might terminate the reservation agreement, costing you the right to own the property.
Follow Up with Succeeding Payments
Before you can occupy the property, you have to pay the down payment in full first. If you lack the resources to pay for everything immediately, you can break it into installments. Many developers only give a six-month window to settle the remainder of the down payment requirement. If you exceed the threshold, it’s a legitimate ground for reservation agreement cancellation.
If you feel you can’t remit the next installment, make sure to submit a promissory letter to gain an extra grace period. In many cases, though, you’re only allowed to go down this route once or twice. Reservation agreements usually require three consecutive payments, or else the deal is canceled.
Although time isn’t your ally when purchasing houses sold on a first come, first served basis, avoid being impulsive. If you bite off more than you can chew, money-wise, you might eventually lose the right to buy the unit and never see your tens of thousands’ worth of initial payment again.