While the thought of buying your dream home might bring a smile to your face, the amount of research and work behind buying it can be stressful. Is it possible to avoid, or at least minimize, the stress of the home-buying process? Absolutely! The key is having a strategy in place when making an offer. Having a strategy can ease your anxiety considerably and help you stay organized.
What should you know as a prospective homebuyer before making an offer?
Be Prepared – Get Pre-Approved for a Mortgage
Imagine finding your dream home and being only one step away from turning the key to the front door when you realize that there is, in fact, a long distance to cover. This distance symbolizes the time you take to start your mortgage application. Getting pre-approved for your mortgage can simplify your home-buying expedition remarkably.
Pre-approval refers to the process where you form your mortgage application and get qualified before finalizing your house. The lender will go through your application, market history, and credit score to determine whether or not you are likely to qualify for a mortgage. When you approach your seller with a pre-approval letter, they will understand that you are a serious buyer with a healthy financial score. They will also realize that you have a feasible game plan to go through with the purchase once your offer is accepted.
A pre-approved mortgage will influence the seller, and they are more likely to accept your offer. Moreover, getting a pre-approval will also help you sketch your budget and plan other financial decisions. You will get a tentative picture of the mortgage rate, loan value, and plans compatible with your profile. This will make it easier for you to look for your dream home within your target price range.
Getting pre-approval on your mortgage might seem like a tedious and challenging job, but with the assistance of our loan experts, it is just a matter of a few minutes. Our market experts will go through your profile and check for pre-approval. If you qualify, you can get a pre-approval letter for the amount that you can present to your seller and make an offer. Being pre-approved for a mortgage can enhance your profile as a buyer, and sellers might view you as a priority option while considering your offer.
Do Not Overlook Closing Costs
A great mistake that most homebuyers make is overlooking their closing costs. While the closing costs might not appear to be a great deal initially, they can often represent a substantial addition to your overall costs. In the excitement of buying your home, do not forget to estimate the closing costs and prepare for them accordingly. Usually, the closing costs on the house account for 2-5% of the overall purchase price. This percentage might affect your budget and cause serious problems. Therefore, it is advised to document them and then make decisions for the house of your choice.
Make a Detailed List of Overall Costs
If you are forming your budget based on your mortgage and down payments, stop right there! While you are making one of the most important decisions of your life, you need to be careful and aware. You should not overlook essential details like the additional costs apart from your mortgage and closing.
Buying a house includes added costs like home insurance, utility bills, and other miscellaneous expenses like the checks you will sign for your house inspector, quality check, repairs, and paperwork. Before you come up with your final offer, consider these costs and acquire additional information about the house. A faulty water system, pipe leakage, or any other maintenance and repair-related issues need to be reported. Accordingly, you can deduct the amount from your final budget while making an offer or add it to your repair budget.
How’s Your New Neighborhood?
Your environment affects your peace of mind, lifestyle, health, and happiness. Before you invest your life savings in a home that will watch you and your family grow, it is vital to ensure that your neighborhood meets the criteria of your dream home. Your neighbors and your neighborhood primarily determine the value of your home. Make sure the two are compatible with your lifestyle, and you do not end up regretting your decision to reside in that area.
Another essential task is to walk around and talk to your neighbors. Engage in conversations and find out the costs of recently sold homes. This will help you ensure that you get the best prices for your home.
Try to Limit Your Contingencies
Every offer you make will come with numerous contingencies. These contingencies will be due to a variety of reasons, most of which might be associated with necessary repairs. These repairs are usually highlighted when you get your home inspected. Being reasonable in the market is the key to avoiding these contingencies.
If the offer you extend seems to be asking for too much, sellers will automatically move you to the bottom of the list. To avoid this and improve your chances of getting accepted, keep your offers fair and reasonable.
Finding the ideal home is not a cakewalk. It’s important to ensure that every step you take from initiating your research to closing the deal is well-planned and organized. Getting assistance from a market professional is a great start. It will guide you in forming a plan for every phase of your journey as a homebuyer. A smart approach will add to your credibility, increase your chances of getting your dream home and make you confident enough to confront the housing market with confidence.
Are you interested in securing a loan quickly and easily? Reach out to an ASTAR loan officer to discuss your mortgage loan options today! Email firstname.lastname@example.org or call 888-ASTAR-11 (888-278-2711)