You’ve found your new home, now it’s time to make an offer!
This is arguably the most intimidating part of the homebuying process, but it doesn’t have to be. Take a look at this list of steps for making an offer to help guide you through the process.
1. Get Pre-Approved for a Mortgage Loan
It is in your best interest to get pre-approved before you even start shopping for a new home. This will identify the loan amount you can borrow, and thus help you determine your house-hunting budget.
Plus, when you eventually find your home and make an offer, a pre-approval from a reputable lender like Waterstone Mortgage makes that offer even stronger. It shows the seller you already have the financing lined up for the amount you’re offering to pay.
Also, as a note, you may want to consider something like our Platinum Credit Approval (PCA), which means that your mortgage loan is essentially fully underwritten before you even make your offer. Not only will this make you an impressive candidate to sellers, but you’ll also have most of your paperwork completed upfront — meaning your loan can close sooner rather than later.
2. Determine Your Price
Once you find “the one,” your real estate professional will help you determine an offer that is competitive and fair. This is based on the list price as well as the going rate for similar homes in the neighborhood (also known as a comparative market analysis), the condition of the home, and, of course, what you are comfortable with paying.
There are a few things you can do to make your offer stand out, such as:
- Get pre-approved for a home loan
- Limit the contingencies (things the seller must do before the sale is finalized)
- Be as competitive as possible with the dollar amount you offer
- Tailor the closing timeframe to the seller’s needs (working with a reputable mortgage lender like Waterstone Mortgage can help with this!)
Your real estate agent or broker will use their expertise to help you make an offer the seller can’t resist.
3. Submit an Offer
Next, your real estate agent will create a purchase agreement, which simply outlines the details of the sale. It’ll state the amount you’re offering, your mortgage pre-approval information, any mortgage contingencies or conditions that must be met before the sale is finalized (for example, you may include a finance contingency that states you can back out of the deal if you don’t sell your current home), and more. Once your written offer is ready, your real estate professional will submit it to the seller.
In some cases, you may want to write a house offer letter to the seller. It’s best to consult with your real estate agent or broker to get their professional take on this move, but a personalized letter to the seller might be that extra item you need to really set you apart from other buyers in a competitive market. In the letter, you can describe why you love the home, how it fits your plans for the future, and why you are looking forward to potentially living there.
4. Negotiate the Offer
Oftentimes, the seller will counter your offer. They may ask for a higher purchase price, adjust the closing date, or minimize contingencies.
In these instances, the seller’s agent will submit a counteroffer to your agent or broker, outlining their requests. Then, you can either accept the offer, reject it, or counter it with a new offer. You’ll want to make this decision quickly, as you never know when they might receive a more desirable offer.
Again, your real estate professional can provide recommendations for moving forward. (Chat with a Waterstone Mortgage loan professional in your area if you need a referral to an outstanding real estate expert in your area.)
5. Accepted Offer
Once the seller accepts your offer, you’ll be all set to move forward.
From there, you’ll get a home inspection, an appraisal, purchase homeowners insurance, and more. Review our homebuying timeline for additional information.
Ready to get started with your homebuying journey? Find a home loan expert in your area today.
