You are financially prepared to buy a home. You have found a house you would like to buy. Now, it’s time to make your purchase offer and show the seller that you are serious about buying their home.
So, how do you prepare your purchase offer? What can you do to make your offer stand out from other buyers? How do you convince the seller that you are the best buying candidate? These are the questions we will answer today.
If you have already taken the first 4 steps in this series, then you will be in much better shape when it comes time to actually make a purchase offer. If not, we highly suggest you read the previous articles and do what you need to do to be fully prepared as a home buyer.
Step 1: Getting Your Finances in Order
Step 2: Hiring a Realtor®
Step 3: Getting Preapproved for Your Home Loan
Step 4: Are You Ready to Start Your Home Search?
Let’s look at each of these topics and how they relate specifically to making an offer on a home you want to buy:
Purchase Offer – Solid Financing
Before you are even ready to buy a house or make an offer, you absolutely need to make sure your finances are in order. This will likely be the biggest financial investment you ever make—at least until you are ready to move up into a bigger and more expensive home. Having a good financial standing will give you a leg up when making purchase offers. We’re talking about a strong credit score, ample savings to make a bigger down payment, steady income and other important factors that make you a more qualified buyer.
The Value of a Realtor®
Having an experienced and knowledgeable real estate agent on your side will make a huge difference when it comes to making your offer. They can help you prepare the offer and make it look as attractive as possible. They can negotiate on your behalf with the seller and their agent. A good buyer’s agent should be working with your best interests in mind as you search for a house and start making offers.
This is absolutely the most important step you need to take, especially in today’s ultra-competitive and fast-moving real estate market. Many sellers may not even consider an offer unless it contains a preapproval letter from a reputable lender. Mortgage prequalification is simply not enough these days. You must get pre-approved for your mortgage loan. This process will let you know exactly what you can afford and the preapproval letter with your offers shows that you are a serious buyer with solid financial backing. You present much less risk for the seller during the closing process because your mortgage loan has already been preapproved for a certain amount.
Finding the Right Home
Provided you’ve already taken those first three steps, you will be better equipped to have a more effective home search process. Though you have to move quickly in today’s real estate market, you still want to make smart decisions. If you are going to make an offer on a home, make sure it is one you really want. A wishy-washy offer on a house you are not really sure you even like will usually just be a waste of time and effort for everyone involved.
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Talk with your real estate agent and lender about all the key factors involved in making an attractive purchase offer. Make sure you understand how certain contingencies, contractual obligations, inspections and various important details work. Don’t waive home inspections or other closing services out of desperation. Prepare a good offer that ideally benefits both you and the seller.
If your offer doesn’t get accepted, it’s not the end of the world. Rejection is often part of the real estate process. It just means it wasn’t meant to be. Keep your head up and keep searching until you find the home of your dreams. If you are prepared, good things will eventually happen. Your offer will be accepted and you’ll be ready to move in before you know it!
If you are ready to buy a home, you should get started with your mortgage loan preapproval as soon as you can. Contact Moreira Team | MortgageRight today!