House buying -- explain the timeline please

[quickstepstar]

I am very confused about this. I have been told that my in earnest $$ when we make an offer (1% of offer price) has to be given with the offer. Then when we negotiate and sign the contract we do 10% of agreed price.

So here is my question: say we find a house that we like. My realtor drafts an offer. Do I have to come up with $$ the same day? (Most of our $$ is in ING account, so it would take 3 days to get it, but I don't want to get it too soon). Or do we negotiate first and then I give my in-earnest $$?

Also for contract to be signed, I think she said we would have to have the inspector come before that's done, so essentially I have to come up with 10% once the inspection is done, and offer has been accepted?

[LoveTrains]

I think it depends on what is your common in your area. In my city, most people only put $500 down as earnest money with the offer.

Then 5% of the purchase price is usually put into escrow when the P&S constract is signed. I put in my contract on my short sale that I would pay the 5% 3 days after the date because I needed to get the money from ING. I am sure you could do that, too, for your 10% or whatever you are putting into escrow.

ETA: You normally do the inspection AFTER you have the signed contract. You should put in your contract that the sale is contingent on a satisfactory inspection. After the inspection, if there are issues, you can generally go back and ask the seller to fix them or take money off the purchase price.

[chessie]

Draft up offer, with a fair price you feel (start a little lower)- Sometimes the seller will go back and forth to you to adjust this, if seller approves, then you put a deposit (100 bucks is fine check), move to inspection/appraisal for bank, get final approval for mortgage. For inspection/appraisal I recall it was around 500 for this, and didn't have to pay any costs until the signing for mortgage and the house at the end.

[Deleted]

When we made the offer we put down $500 in earnest money and the rest (20%) was brought to the closing.