One transaction. Different stages.
An offer tells the seller what you are proposing: a price, timing, and other terms. The seller may accept, decline, or counter. In many transactions, the same written form becomes the purchase agreement when it is properly accepted. A completely separate document is not always required.
The document’s name alone does not tell you whether you are bound by it. State law, the form, signatures, delivery, and any stated conditions can affect when an agreement becomes enforceable. Have your real estate professional and, when appropriate, an attorney explain your specific documents before you sign.
Read beyond the purchase price.
Look at the deposit, financing terms, deadlines, closing date, included items, and any inspection or appraisal conditions. A contingency makes a particular part of the transaction conditional; the wording and deadlines determine what protection it provides.
An earnest money deposit and a down payment are different parts of the transaction. The contract controls how the deposit is held and what happens if the sale does not close. Do not assume a deposit is refundable simply because you decide not to proceed.
Earnest money and the down payment are different.
Earnest money is a deposit associated with the purchase contract. A down payment is the portion of the purchase price you contribute rather than finance. Depending on the agreement and closing arrangements, your earnest-money deposit may be credited toward the money you need to bring at closing.
Do not assume earnest money is automatically refundable. The agreement, contingencies, deadlines, and applicable law determine what happens if the purchase does not close. Ask your real estate professional or attorney to explain the deposit terms, and review how the credit appears on your closing documents.
An accepted offer is not a mortgage approval.
Your purchase agreement is between the buyer and seller. Your mortgage application goes through a separate review with the lender. A preapproval letter does not replace the remaining income, credit, property, and underwriting conditions.
Share the accepted agreement and any amendments with your loan officer promptly. Discuss the financing timeline and outstanding documents so the mortgage process can be coordinated with the contract’s deadlines. Ask your real estate professional or attorney about the consequences of changing or waiving a contract condition.
Keep the next steps clear.
Once you are under contract, stay available for lender requests and arrange the inspections and closing services that apply to your purchase. Review your loan documents, including the Closing Disclosure, and raise questions before closing day.
Keep copies of the signed agreement and amendments together. Ask who is tracking each deadline, what you need to provide, and who to contact if the transaction changes. Our mortgage team can explain the financing steps; your attorney can advise you on legal rights and obligations.
Your questions.
Straight answers.
Is an offer the same as a purchase agreement?
They describe different stages, but they may use the same document. An offer proposes terms; proper acceptance can turn it into a binding purchase agreement. The specific form and applicable state law matter.
Can I cancel after my offer is accepted?
That depends on the contract, any applicable contingencies, deadlines, and state law. Get advice on your agreement before taking action or assuming your deposit will be returned.
Does signing a purchase agreement lock my mortgage rate?
A purchase contract and a mortgage rate lock are separate. Ask your lender whether your rate is locked, when the lock expires, and which conditions apply.
Does earnest money count toward my down payment?
It may be credited toward your cash needed at closing, depending on the purchase agreement and closing arrangements. Your loan officer and closing agent can explain how the deposit, down payment, and other closing costs fit together. Confirm the credit on your closing documents.
Sources
- Fannie Mae · Making an offer ↗
- American Bar Association · The purchase contract ↗
- CFPB · Closing on your new home ↗
General educational information. Program availability, eligibility, pricing, and documentation depend on your state, property, and application. Ask an expert for current options; this page is not a loan offer or approval.