Buying a home is not as simple as making a purchase at the store. There is a process that you must go through to make the purchase, all of which may not be familiar to first time home buyers. Here is what you can expect to do when buying a home for sale.
Get A Mortgage Pre-Approval
You may have heard of getting a mortgage pre-approval before making an offer on a home, but you may not be sure why it is important. The letter tells the seller of the home how much a bank is willing to lend you after doing a basic background check on your finances. The lenders look it your debts, employment history, and income to make a decision how much much they would be willing to give you for a home.
This letter tells the seller that your loan is likely to be approved by the bank based on your finances. It can give the seller confidence moving forward with you as the buyer without worrying that you won't be able to afford their home.
Make An Offer
You'll need to work with you real estate agent to draft a formal letter making an offer on the home. This is your opportunity to suggest a different offer price than what the seller listed. If the house has had no buying activity for quite some time, you can offer a price below what the seller is asking for and see if they accept it. If there are multiple offers being made, you will want to go above the asking price to beat out those competing offers.
Chances are that you will have some back and forth with the seller about the final price of the home. You'll work closely with your realtor to either accept their counter offer or make a counter offer of your own. Instead of asking for a lower price, you can ask for concessions regarding the sale of the home, such as fixing parts that are damaged before the sale is finalized.
Get A Home Inspection
You can move forward with a home inspection once the seller accepts your offer. This is an opportunity to have a professional look at the home for faults before you purchase it. Your offer letter should have provisions in it that let you back out of the sale of the home if you find problems with the house that were not apparent during the initial walk-throughs.
This is just the start of what to expect when buying a home. Work with your realtor for assistance with the rest of the process.Share
31 May 2019
Although I've never worked professionally in the real estate business, I sure know my way around it. How, do you ask? Well, I have simply rented a lot of different places and worked with a lot of different landlords and real estate agents. In the past 7 years I've lived in 11 different houses or apartments, none of them my own. In finding those 11, I have looked at literally hundreds of apartments. I used to hate house hunting, but now it's kind of fun. You just need to know what you want and the right questions to ask. Hopefully this blog can help you learn some of the tricks of the trade from another renter like yourself.