Step 5- Purchase & Sale Contract

The Purchase and Sale Agreement (P&S) is a very important contract as it binds you and the seller to execute the transfer of the home at an agreed price under specific terms. You need to negotiate with the seller/listing agent who will be responsible for any repairs, determine the amount of any seller funds for repairs to be included in the mortgage amount, any seller contributed funds to buy-down the interest rate, and then execute the Purchase and Sale contract.

Prior to signing the contract, you need to contact your Housing Counselor and provide them a copy of the MLS(your agent will do this) and the amount you are considering to offer the seller to confirm if the property is within your maximum purchase price, which may change due to interest rate shifts, property taxes, hoa etc.  After careful consideration, you can accept this very important contract by signing it.

Since you are responsible for paying any penalties arising from a P&S Agreement, regardless of the actions of NACA or the lender, we strongly recommend that your contract adhere to the guidelines below, to minimize the likelihood of additional costs. The following items should be addressed in your Purchase & Sale Agreement:

Eliminate from your P&S Agreement:

-Charges or penalties for closings past a certain number of days from the executed contract (per diem);

-Loss of your earnest money deposit if the property does not appraise for the purchase price you agreed to; and

-Loss of your earnest money deposit if your mortgage application is denied.

Include in your P&S Agreement:

-Correct spelling of your name; the same way it was entered on your NACA documents or as it appears on your picture ID.

-Conditions requiring satisfactory NACA-approved home and pest inspector(s); this includes time to turn on utilities and undergo other evaluations or work write ups if it requires a major renovation;

-At least 30 days to close from the date of the executed contract;

-At least 45-to-60 days to close for properties requiring significant renovations, as identified on the home inspection, from the date of the executed contract;

-Approved NACA and lender settlement agent to provide settlement services;
Note: when using an approved settlement agent, the participating lender pays the settlement agent’s fees and closing costs; however, if you request another settlement agent, he/she must be approved by both NACA and the lender and you are likely to incur significant additional costs.

Step 1- Initial Home Buyer Workshop

Step 2- Housing Counseling & Preparation

Step 3- NACA Qualification

Step 4- Housing Search/ Agent Representation

Step 5- Purchase & Sale Contract

Step 6- Property Condition/Repairs

Step 7- NACA Credit Access & Bank Application

Step 8- Mortgage Processing & Underwriting

Step 9- CONGRATULATIONS! Closing Day & KEYS!

Step 10- Post Purchase Membership Assistance Program