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First-Time Buyers: NEVER Agree to these 5 Contract Terms! Analytics Table
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Buying your first home? These 5 contract terms can put your earnest money, your cash, or even the entire purchase at risk if you don't understand what you're agreeing to. 📖 Read the full article for this video: https://themortgagepatriot.com/blog/5-contract-terms-first-time-buyers/ 📘 Download the free 169-page First-Time Homebuyer Roadmap: https://themortgagepatriot.com/first-time-homebuyer-roadmap/ 🎓 Register for the free first-time homebuyer webinar: https://webinar.themortgagepatriot.com/ In this video, Patrick Kevin Fagan, The Mortgage Patriot, breaks down five home purchase contract terms first-time buyers should understand before signing an offer — including inspection and option periods, appraisal protections, financing contingencies, non-standard contracts, and post-closing seller agreements. If you're buying in San Antonio, the Texas Hill Country, New Braunfels, Bulverde, Spring Branch, Schertz, Cibolo, Boerne or nearby areas, these protections can help you avoid costly mistakes and better protect your earnest money. The 5 contract mistakes covered: ✔️ Signing a non-standard real estate contract without proper review ✔️ Waiving your inspection or Texas option period ✔️ Agreeing to cover an appraisal shortfall without understanding the risk ✔️ Giving up important financing protections ✔️ Making informal seller post-closing agreements instead of putting everything in writing WHY THESE CONTRACT TERMS MATTER A home purchase contract is more than the price you offer. Deadlines, contingencies and addenda can determine what happens if an inspection finds major problems, the appraisal comes in low, financing falls apart, or the seller remains after closing. INSPECTION & TEXAS OPTION PERIOD The inspection period lets buyers investigate the property's condition. In Texas, the option period can be an important contract tool. Buyers should understand the deadline, option fee, inspections they may want, and what rights they have before shortening or waiving protections. APPRAISAL PROTECTION Your lender's appraisal and your purchase price are not always the same number. If a home appraises below the contract price, the buyer may face an appraisal gap. Before agreeing to cover a shortfall with additional cash, understand the exposure you're accepting and the protections written into the contract. FINANCING CONTINGENCIES A pre-approval is not final loan approval. Mortgage underwriting still reviews the borrower, property and loan. Financing protections can matter if a loan cannot be completed as expected, and contract language and deadlines matter. POST-CLOSING SELLER AGREEMENTS Sometimes a seller wants to remain in the home after closing. If that happens, the arrangement should be properly documented rather than handled with a casual handshake agreement. CHAPTERS 00:00 – 5 Contract Terms Buyers Should Avoid 01:54 – #1 Non-Standard Real Estate Contracts 03:27 – #2 Waiving the Inspection / Option Period 04:59 – #3 Agreeing to Fund an Appraisal Shortfall 07:21 – #4 Giving Up Financing Protections 09:01 – #5 Handshake Deals After Closing These issues can affect your earnest money, appraisal, financing approval, inspection rights, closing costs and ability to walk away from a transaction. The goal is not just to get a home under contract — it's to structure the contract so you're protected. FIRST-TIME HOMEBUYERS IN GREATER SAN ANTONIO & THE TEXAS HILL COUNTRY Buying your first home involves more than choosing a property and getting a mortgage. Your offer price, option period, inspection strategy, appraisal terms, financing addendum, seller concessions, repair negotiations and closing timeline can all work together. Patrick Kevin Fagan is a dual-licensed Senior Mortgage Loan Officer and Texas REALTOR®, helping buyers understand both the financing and real-estate sides of the transaction. 🎓 FREE Essential First-Time Homebuyer Webinar https://webinar.themortgagepatriot.com/ In the webinar, I cover: • Pre-approval and buying power • Down payment and closing costs • Offers and negotiation • Inspections and repairs • Appraisals and underwriting • Closing and getting the keys • Common first-time buyer mistakes Need help buying a home in Greater San Antonio or the Texas Hill Country? 📅 Book a free Mortgage Consultation: https://calendly.com/pkfaganappointmentsetting 🌐 Visit our website: https://themortgagepatriot.com/ 📲 Text Patrick: (210) 317-6514 Patrick Kevin Fagan | The Mortgage Patriot Mortgage + Real Estate | Greater San Antonio & Texas Hill Country Educational content only; not legal advice. Real estate contracts, addenda, deadlines and buyer protections vary by transaction. Review contract questions with the appropriate licensed professionals before signing. #FirstTimeHomeBuyer #HomeBuyingTips #TexasRealEstate #SanAntonioRealEstate #TexasHomeBuyer #RealEstateContract #HomeBuyerMistakes #OptionPeriod #HomeInspection #HomeAppraisal #MortgageTips #EarnestMoney #TexasRealtor
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