In this post, we’re going to look at How to Make an Offer to Buy a House. Buying a home is most likely the largest purchase you’re ever going to make, and it could seem overwhelming at times. Luckily, there are tools and experts to help you understand the fair value of your future home, deal with your finances, and make your offer more desirable while still protecting your money. Here’s a step-by-step guide to understanding the process, trusting expert help and figuring out how to make an offer on a house you love.
1. First Stop is a Lender
Unless your deep pockets are paying cash for a home (and few of us can), you’ll need to get pre-approved for a mortgage as a first step. It doesn’t make sense to start open house shopping until you know how much home you could comfortably afford. You’ve probably seen on Zillow the estimated mortgage payment or plugged in a few basic numbers into an online mortgage calculator, but that’s just not enough to understand your real buying power.
There are several important elements that go into a home pre-approval including downpayment, credit history, outstanding debt, income, tax returns, and more. Plus, a seller wouldn’t entertain an offer from you unless you could show them you’re ready to buy with a pre-approval letter in hand and POF (proof of funds for your downpayment either a bank statement, IRA, or 401 statement). Do yourself a favor, get a pre-approval letter as a first step. Working backward isn’t any fun for anyone especially you.
2. Who’s Your Realtor
If you don’t have a trusted Realtor or Real Estate Agent now’s the time to get one. Your mortgage broker and family or friends should be able to give you a trusted referral. Make certain the Realtor you decide to work with does a fair amount of business in your desired areas. You need to work with someone local who knows the school districts, home values, and has relationships with other agents. The worst thing you could do is work with a rookie or part-time agent. I’m sure your friend’s aunt who works fulltime as an account and has a real estate license is a very sweet lady – but she is the last person you want representing you in a home purchase. You need a Realtor like me who works seven days a week helping people buy and sell real estate. The best question is ask your Realtor referral how many transactions they have done the past twelve months or how many escrows are they currently in. There’s your answer.
If you don’t have a trusted Realtor or Real Estate Agent now’s the time to get one. Your mortgage broker and family or friends should be able to give you a trusted referral. You could always research referral based websites like Realtor.com or Yelp.com. Make certain the Realtor you work with does a fair amount of business in your desired areas. You need to work with someone local who knows the school districts, home values, and has relationships with other agents. The worst thing you could do is work with a rookie or part-time agent. I’m sure your friend’s aunt who works fulltime as an account and has a real estate license is a very sweet lady – but she is the last person you want representing you in a home purchase. You need a Realtor like me who works seven days a week helping people buy and sell real estate. The best question to ask a Realtor you’re considering, ” how many transactions have you completed the past twelve months or how many escrows are you currently in?” There’s your answer.
3. Lets Home Shop
Now that you have a pre-approval letter and a trusted Mortgage Broker and Realtor team on your side you’re ready to start searching for your new home. Based on your buying power, you’ll communicate with your Realtor the type of home you desire. Your Realtor will bring you a short list of the best properties both on and off the market. Side note: Another reason to work with an expert fulltime Realtor is that they should have access to properties currently not for sale on the open market through agent networking. I seriously doubt your friend’s accountant Aunt will have these types of relationships.
Once you identify a few properties which could be your new home your agent will set up appointments to see them in person with you and your family. After careful consideration, your Realtor will help you submit a complete offer package including the CAR agreement, POFs, and a pre-approval letter. If your offer is accepted it’s off to escrow!
Escrow Process
Once you’re in escrow with an accepted offer the real work begins for your Agent and Mortgage Broker. There is a very specific way I help my homebuyer clients save money in escrow including recurring and nonrecurring closing fees or a price reduction. Please check out the Home Buying Escrow Process for more information on my strategy.
Los Feliz Real Estate | Los Feliz Homes For Sale | Los Feliz Houses For Sale
This article, How to Make an Offer to Buy a House, was provided by Glenn Shelhamer of The Shelhamer Real Estate Group. If you are selling your Los Feliz home, I have a comprehensive marketing plan, including preparing your Los Feliz home properly that will help get your home sold in less time and for more money. Call me at 310-913-9477 or contact me to discuss how I will get your home sold.
For a mortgage, Pre-Approval contact Joe Tishkoff, from Skyline Home Loans
Original Source: SilverLakeBlog.comOriginal
