You’ve found a home you love and are ready to submit an offer. Well, “ready” is a loose term. You’re not sure what’s involved in the process or what needs to be done before the offer is submitted. Fortunately, our real estate agents can guide you through it. Here’s a crash course in Home Offers 101, with everything you need to get you ready.
- Pre-Approval
Ideally, you should do this before you even start looking at homes for sale, but if you haven’t yet, now is the time. Getting mortgage pre-approval from a local lender, such as Ruhl Mortgage, lets you know how much you’ll be able to borrow—which tells you what your budget is and what price range of houses you can afford. It also lets the seller know you’re serious. Anyone can throw a number at a seller, but if you have mortgage pre-approval, they’ll see that you can afford to pay that much. - Down Payment
In addition to the loan, you’ll also need money for the down payment. Many homebuyers think they need to save up 20% of the purchase price—which precludes many people from buying homes in today’s economy. However, while a larger down payment will lighten the load later on, first-time homebuyers can make an offer with as little as 3% down, depending on the type of mortgage you secure. - Neighborhood Research
Before making an offer, you need to ensure this is the home you want to buy. Remember, it’s more than just a house. It’s a neighborhood. It’s a community. It’s a commute. Talk to the neighbors to see what they like and think of the area. If there’s anything you need to know, like safety issues or problems with utilities, they’re the ones who can tell you. If you have kids, look at the schools in the area, too, as well as grocery stores, gas prices, and other things you might need or want. And drive to work from that area at least once, around the time you’d normally leave, to see what traffic is like, what route you should take, etc. - Schedule Another Showing
There’s a difference between liking a house you’re viewing and knowing what the house is like. That’s why it’s important to look more closely. First, take another walkthrough yourself to see if you might have missed anything the first time. Can you see yourself living here? Are there any changes or upgrades you’d want to make? - Offer Letter
Once everything else is taken care of, an offer letter needs to be submitted. It will include the home’s address, all names on the title/abstract, the amount offered, and any other stipulations the seller needs to meet (e.g., home inspection). Your pre-approval letter will also be included. The seller can then accept or reject your offer or make a counteroffer, opening negotiations. Your real estate agent will help you through this process to ensure you get the deal you want.
Buying a home can be daunting, but we’re here to guide you through it from start to finish. Contact us today to find your next home.