How to Make an Offer on a Home

How to Make an Offer on a Home
Making an offer to buy a home can be an overwhelming task if you are not prepared with the appropriate steps to take. There are many decisions to be made and professionals you will be working with in order to become a homeowner so it is essential you are equipped with the tools necessary to move forward. By following these 6 simple steps you will be able to put in an offer on the home you have your eye on. 
Step 1- Researching Your Mortgage Options 
Consulting with a loan officer at your bank or a mortgage broker is the first step in this process.  You will need to speak with either of these professionals to determine the amount of money you can afford on your mortgage, the interest rates of the loan, and whether or not you want a variable or fixed interest rate.  In speaking with either professional, they will assess your debt to income ratio, run a credit check, and let you know how much money you are eligible to borrow.
y: hidden;">Step 2- Down Payment
After seeing the amount of money you are approved to borrow, you will need to determine how much money is required for a down payment. The down payment required can be anywhere from 5-20% depending on the terms of the loan. Keep in mind, there are also government funded loans and grants available if you are a first time buyer.
Step 3- Prequalification 
Once you have established how much you are able to borrow, the down payment you need, it is time to get pre-qualified for a mortgage through your financial institution or broker. Each institution may have a different procedure and documentation required so be sure to ask to avoid prolonging the process.
Step 4- Observing The Market
Prior to putting in your offer it is important to note what type of market you are in, a buyerís market or sellerís market. In a buyerís market you have less competition over a home and therefore the seller may be willing to take an offer lower than the price they have listed.  Whereas in a sellerís market, the competition for homes is higher allowing the seller more ability to get the price they are asking for.
Step 5- Researching The Property Of Interest
When looking to put an offer in on a home, it is essential to find out about different aspects of th e property.  A few points to consider are how much did the seller purchase the home for, what is the history of the home, sale price of similar houses nearby, and how long or how many times has this house been listed. Each of these questions will factor into your offer and decision as to whether this house is right for you. If you decide this is the house for you, it is suggested you determine the conditions under which you will buy the house. You will need to think about having the house inspected, who will be financially responsible for them, and time frame in which inspections are to be completed.
Step 6- Putting In The Offer

You are now ready to put in your offer. Prepare yourself for the chance that the seller may not accept your initial offer and respond with a counter offer. This process may take time, so patience will be important. When putting in an offer, know your limits and what you can afford without putting yourself or your family in financial strain.How to Make an Offer on a Home

 

Making an offer to buy a home can be an overwhelming task if you are not prepared with the appropriate steps to take. There are many decisions to make in becoming a homeowner, so it is essential you are equipped with the necessary tools. By following these 6 simple steps you will be able to put in an offer on the home you have your eye on.

Step 1- Researching Your Mortgage Options

Consulting with a loan officer at your bank or a mortgage broker is the first step in this process. You will need to speak with either of these professionals to determine the amount of money you can afford on your mortgage, the interest rates of the loan, and whether or not you want a variable or fixed interest rate. In speaking with either professional, they will assess your debt to income ratio, run a credit check, and indicate how much money you are eligible to borrow.

Step 2-  Down Payment

After seeing the amount of money you are approved to borrow, you will need to determine how much money is required for a down payment. The down payment required can be anywhere from 5% to 20%, depending on the terms of the loan. Keep in mind, there are also government funded loans and grants available if you are a first time buyer.

Step 3-  Prequalification

Once you have established how much you are able to borrow, the down payment you need, it is time to get pre-qualified for a mortgage through your financial institution or broker. Each institution may have a different procedure and documentation required, so be sure to ask to avoid prolonging the process.

Step 4-  Observing the Market

Prior to putting in your offer it is important to note what type of market you are in: a buyer's market or seller's market. In a buyer's market you have less competition over a home and therefore the seller may be willing to take an offer lower than the price they have listed. Whereas in a seller's market, the competition for homes is higher, allowing the seller more ability to get the price they are asking for.

Step 5-  Researching the Property of Interest

When looking to put an offer on a home, it is essential to find out about different aspects of the property. A few points to consider include how much the seller purchased the home for, what is the history of the home, sale price of similar houses nearby, and how long or how many times the house has been listed. Each of these questions will factor into your offer. If you decide this is the house for you, it is suggested you determine the conditions under which you will buy the house. You will need to think about having the house inspected, who will be financially responsible for the inspections, and time frame in which inspections are to be completed.

Step 6-  Putting in Your Offer

You are now ready to put in your offer. Prepare yourself for the chance that the seller may not accept your initial offer and respond with a counter offer. This process may take time, so patience will be important. When putting in an offer, know your limits and what you can afford without putting yourself or your family in financial strain.