Buying a home is an investment, so you must treat it like one. The best step you can take is to become knowledgeable about the process. To learn about home buying, watch our informative videos here! When submitting an offer on a home, here are the five most important things to consider.
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1. Budget and Pre-Approval
Before you submit an offer, and even before you begin home searching, the first step is to get pre-approved. Leading up to the pre-approval process, complete the following:
- Review your income and your expenses to determine your comfortable monthly mortgage payment (how much you can affordably manage each month for your housing expense).
- Additionally, review your finances and try to improve aspects of your financial portfolio, the best you can. Examples of important aspects to improve are your credit score, debt-to-income ratio, etc.
The final step is to work with a lender to get pre-approved. During the pre-approval process, your lender will determine your mortgage repayment eligibility, and will identify the amount you are approved for. This is important so you know what listing prices you can shop within.
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2. Prepare For a Fast Pace
The truth is the market is fast paced. Homes are selling quickly, and with multiple offers on the home. As a buyer, you will want to prepare and equip yourself to compete with other buyers in this fast-paced environment. Your agent will surely help you with this, but you should take the time to become knowledgeable about homebuying. This free home buyer guide has all you need to know about the homebuying process.
3. Work With a Real Estate Agent
Working with a trusted real estate professional is helpful. Your real estate agent specializes in the home buying and selling processes. Find a real estate agent you trust to guide you during your home search, strategy and negotiation processes. Your agent will provide the insight you need to compete in this environment!
4. Make a Strong Offer
Work with your real estate agent to create a strategy for your home offer. You want your offer to be strong, but fair. Your agent will help by reviewing the market value, recent home sales, and demand to determine a strong offer strategy. Remember, the seller is allowed to accept, reject or counteroffer. Always consult with your real estate agent to ensure you negotiate a deal that is the best for you.
5. Open and Honest Negotiation Communication
If you are in the middle of submitting an offer, then you may negotiate a deal with the seller. Remember, the seller wants to make money from their home the same way you want to not overpay on a home. Negotiation is key, as is being flexible and keeping open lines of communication.
All in all, homebuying is a process that is rewarding. Submitting a competitive offer is a huge part of that. To take the first step and get pre-approved, contact a team member today!