This is the time to think carefully about what you want and what you can afford. If your offer is accepted, it becomes a legally binding contract. Make sure you don't include anything in the offer that you're not totally comfortable with doing.

Make sure you put everything in writing. Offers usually include items like:

• Proposed purchase price.
  Remember, the seller may counter-offer with a higher purchase price - consider that when you decide on your proposed purchase price.
• Concessions.
  This includes things you'd like the seller to help pay for, like closing costs.
• Conveyances.
  This covers any personal property to be included in the sale, like the washer and dryer or the refrigerator.
• Home inspection contingencies.
  Make sure you're prepared if the home inspection report shows major problems.
• Earnest money.
  Earnest money is a deposit you offer to show you're serious about purchasing the house. Earnest money is usually held in escrow and applied to your closing costs at settlement. If you fail to meet the terms of your contract, you may lose this deposit.
• Acceptance.
  This covers how long the seller has to respond to your offer.
• Mediation and arbitration.
  These are legal methods for handling contract disagreements between you and the property seller. These methods are not necessarily beneficial to you, and you do not need to agree to them.

Once the seller accepts your offer, the offer becomes a contract - you've contracted to buy a house. What's in a contract varies from state to state, but some common things you'll find include:

• Legal description.
  This describes the property you are buying in terms of its dimensions (metes and bounds) relative to a fixed point (like a road) or in relation to a recorded subdivision plat or declaration of condominium. It often includes the street address of the property.
• Selling price and deposit.
  This is the price you and the buyer agreed upon, as well as the amount of earnest money you'll pay when you sign the contract.
• Mortgage contingency.
  A contingency protects you by stating that the sale depends on a lender approving you for a specific mortgage, rate, and term.
• Closing date and location.
  The closing date (also called the settlement) can be several weeks to several months away to meet yours and the seller's needs.
• Conveyances.
  Double check these conveyances to make sure that the items are there and are what you and the seller agreed on in the offer.
• Home inspection.
  If you've made the contract contingent on a home inspection, this will set an inspection date and provide an explanation of what will happen if the inspection identifies any problems.
• Possession date.
  This is the date you can move in. It's usually the closing day or very soon after it.
• Property insurance.
  This details the home insurance policy that will cover the property until the closing date. This can be the buyer's or seller's policy.
• Property disclosures.
  This includes legal notification of any required information concerning the property (such as copies of documents from the homeowners' association), issues or problems with the property.