The Home Buying Experience

Making an Offer on a House

Jet Direct Mortgage

You’ve finally found the house. It’s got all the rooms you need, there’s a beautiful backyard, and it’s perfect for you and your family. Now’s it’s time to make the sellers an offer. But how exactly do you do that? And what’s happens after you’ve made your offer? How does the process work? Don’t fret. Jet Direct Mortgage has got the answers you need.

How to make an offer

Even if the price fits your budget, you must be prepared to negotiate if the terms don’t feel right for you. It may even be ideal for you to walk away completely, if things don’t seem right, no matter how perfect the house itself is. Before making an offer, you’ll want to make sure that you have been pre-approved by a mortgage lender. Being pre-approved means that a lender has taken an in-depth look at your finances and has calculated how much money they will allow you to borrow.  Being pre-approved is beneficial to sellers as it helps show that you are serious, and making a legitimate offer. Purchasing a home starts with making a written offer to the seller. Upon receiving your offer, the seller will either accept, decline, or make a counteroffer. You could then either accept or decline the counter offer, or make a new offer. If your offer is continually refused, it may be time to start looking for a new house.

How it works

Offers to purchase houses are legally binding, and different states have different guidelines on how the process works. Your real estate agent should give you with a Residential Purchase Agreement that complies with your states laws. Some states may require a lawyer be present. Some real estate agents will encourage buyers to attach a personal letter to their offer in an effort to make their offer have a more emotional impact. Other agents encourage buyers to explain why they feel the price they offer is justified. Letters of this nature are fine, but it is important to remember that they don’t hold any sort of legal authority.

Offers will typically include the following information:

  • The address of the property to be purchased
  • The purchase price and terms regarding earnest money
  • Confirmation that the seller will provide the title to the property
  • Terms regarding closing costs and other fees
  • When the offer expires
  • An expected date to close
  • Any other contingencies, such as home inspections and appraisals

They accepted the offer. Now What?

It’s important to remember that the deal is done until all legal parties have signed the offer agreements. Any sort of handshake or verbal confirmation does not mean anything. Once the documents have been signed, you’ll need to begin finalizing the financing of the property with your mortgage lender. Sources: