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If only the home buying process was that simple!
When you find the right home, you will be asked to pay an earnest money deposit when you submit your purchase offer. This deposit amount is usually 1 percent to 3 percent of the sale price of the home and the purpose for this is to show the seller that your offer is made in good faith. Invariably the earnest money deposit is considered to part of your down payment when you close the deal.
However, before closing the home purchase deal, you and the seller will be required to sign a purchase agreement in the home buying process which is a legally binding contract.
A purchase agreement in home buying process contains the offer price, terms, and any inclusions or exclusions. It also contains provisions like sale-of-home contingency deadline regarding the mortgage, appraisal, title, seller’s property disclosure, inspection, closing, possession, offer acceptance and other items of importance.
It is always in the interest of the buyer to have the home inspected and this clause is always mentioned in the purchase agreement in home buying process. The agreement will contain an inspection contingency clause that gives you specified number of days to have your own inspector inspect the home and if the inspector finds anything wrong with the property, you will have the option of either asking the seller to repair or replace the concerned items or you can terminate the contract and get back your deposit.
If the seller agrees to repair or replace the items, he will have a specified number of days to do so. And unless all the items are fixed, you have the option of terminating the purchase agreement and getting back the deposit.
Therefore, purchase agreement in home buying process plays an important role not just from the seller’s point but also from the buyer’s.
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When you are trying to purchase a home, the entire experience can be thrilling as well as a daunting one. There are many things that you need to learn about purchasing a home while trying to take on a mortgage so that you can pay for your new home. 
