Buying a house is incredibly exciting. You have a whole space to call your own and make into the cozy retreat you dream of. Of course, as you’ve probably heard, buying a home is also a long process. Once you’ve found a home you’re interested in, it’s important to move quickly. In most areas of the country, the housing market is very competitive.
How do you make your offer? Let’s take a look!
Be Pre-Approved For a Mortgage
This step is so important that you should get it done before you even look at properties. Being pre-approved for a mortgage lets you know exactly how much you can afford and ensures the seller that you’re serious about your offer.
This is different than a pre-qualification. A pre-approval looks at your actual income, credit, and more. You’ll get a pre-approval letter that you can use when making your offer. Many sellers won’t consider an offer without this letter.
To get pre-approved, you’ll need to follow three simple steps. First, find a Mortgage Loan Advisor who can help you get the money you need to buy your home. Then, determine your budget and how much you’re asking for. Finally, get the documentation ready so the banker can review your mortgage request.
Find Your Ideal Home
Once you have your pre-approval letter, it’s time to go house hunting! Don’t feel like you have to look at homes on the upper end of your approval. Keep your budget in mind and ensure that the homes you consider are ones where you could comfortably afford the mortgage.
Working with a real estate agent is essential because they’ll know about homes you might not find otherwise. They can also help you move quickly to see a property that was just listed or may help you find a pre-listing opportunity.
Make sure you do your research on what neighborhoods you’re interested in and what features you want in a home. Once you’ve found a perfect property, don’t stop looking — it’s important to have a fallback option too, in case your offer for the dream house isn’t accepted.
Decide How Much to Offer
This step takes a bit of strategy, and your real estate agent may be able to help. You might want to offer the full asking price, or it might be better to offer a bit less — or a bit more. Also take into account what repairs you already know are needed. You may want to subtract the amount of those fixes from your offer price, which is known as a seller concession.
Consider Contingencies
No matter how hot the real estate market is, never make an offer that waives the inspection. You never know what problems the inspection could uncover that would make you uncomfortable buying the home or might change the price you’d offer.
Beyond the inspection, think about why you’d walk away from the purchase. For example, perhaps your financing fell through, or the home didn’t appraise for enough money for the mortgage company to cover the offer price. These should be included in the contract.
Are You Ready to Buy a Home?
Once you’ve made the offer, there may be some negotiation. Or, the seller may accept your offer as it is. Either way, you’re well on your way to getting your dream home.
Getting funding for your home is the essential first step, and we’re here to help. Contact us at Jersey Mortgage today to start your pre-approval!