"First Look" In Escrow, Now What?

[Stanley Ward]

I've been listening to BPP for two years now and the time has finally come. I had the oppurtunity to get into a "first look", submit an offer, and now were in escrow before the house was even listed. The house is a 3/2, 2066 SF in a perfect neighborhhod with the prices going up every year.The house is rough on the inside and needs about 14k in materials, labor, and appliances (already have a licensed contractor bid).  All of this happened so quickly and all the countless hours of BPP went out the door when I found this deal, well not all of them but I see what can take over people when buying a house.

My problem is figuring out what loan to go with and some realator questions:

1) Is my FHA 203 k loan Good: Sales price 290,000/ 279,850 base loan at 4.125%; total cash down $13,574. I think this is my best option for what I want to put down and it allows me to keep some money in the bank.

Any thoughts?

2) There is carpet missing in one room, will this need to be replaced prior to the loan apprasial? Or since the loan is a 203k can the contractors bid be used in evaluating the property with the understandng that the bid includes all new flooring.

3) The spliting of closing cost was not clearly identified in the signed couteroffer, the thought process was get in with the offer and don't mention the splitting of the closing cost (realtors idea but he made it sound like it's typical and typical that the Owner would cover the cost). After really reading the counter offer, I realized that the closing cost at 50/50 was not there...is it too late to go back to the Owner and tell them to split the cost? I guess the thought process was since were getting such a good deal that even though we would be paying the closing cost it would still be a good deal.

Has anyone ever paid the closing cost just to get the good deal?

4) Termite Inspections: The termite inspection was not a requirement of the offer either, during my inspection I saw tracings so we informed the realator and he scheduled a inspection. I believe it's only right for the Owner to pay the cost if there are termites or termite damage.

Is this fair?

What if it wasn't in the offer? Realator indicated that they would most likely pay but said we would cross that bridge when we get there...we're there now and I'll find out in tomorrow's inspection. Can I go back to the Owner to pay the cost?

5) At what point can I pull my deposit back if I decide I don't want to purchase the house, say the Owner does not want to pay for the termite expense, if that happens then I'm out and I want my money back.

What are the CA rules for this scenario? At what point do I not get my deposit back?