So we have made an offer. Don't be nervous. Be reassured there are two things working to a buyer’s advantage today, low mortgage rates and home prices. This is a great market for you, and if this offer is not accepted, there are always more great homes out there, and yours is waiting for you.
Negotiate the Offer
Oftentimes, the seller will counter the offer, typically asking for a higher purchase price or to adjust the closing date. In these cases, the seller’s agent will submit a counteroffer to your agent, detailing their desired changes, at this time, you can either accept the offer or decide if you want to counter.
Each time changes are made through a counteroffer, you or the seller have the option to accept, reject or counter it again. The contract is considered final when both parties sign the written offer.
If your offer is approved, Freddie Mac urges you to “always get an independent home inspection, so you know the true condition of the home.” If the inspector uncovers undisclosed problems or issues, your agent can discuss any potential repairs with the seller’s agent.
The inventory of homes listed for sale today remains well below the 6-month supply that constitutes a ‘normal’ market. Buyer demand has continued to outpace the supply of homes for sale, causing buyers to be in competition for their dream homes. Presenting an offer as quickly as possible might make a big difference when you’re ready to move forward.
Whether buying your first home or your fifth, let’s talk about your needs and what you’re looking for to make sure the process goes smoothly.
Don't look suspicious - lenders are cautious!
1. Don’t Deposit Cash into Your Bank Accounts.
2. Don’t Make Any Large Purchases Like a New Car or Furniture for Your New Home.
3. Don’t Co-Sign Other Loans for Anyone.
4. Don’t Change Bank Accounts.
5. Don’t Apply for New Credit.
6. Don’t Close Any Credit Accounts.
Any blip in income, assets, or credit should be reviewed and executed in a way that ensures your home loan can still be approved.
If your job or employment status has changed recently, share that with your lender as well.
The best plan is to fully disclose and discuss your intentions with your loan officer before you do anything financial in nature.
On The Home Stretch - so to speak
Closing on a House Checklist
Open an escrow account (Where sensitive documents, earnest money are kept during closing.)
Sign the seller's disclosure (Covers the history of the property that may affect its function or value.)
Inspect the property (A third-party contractor will thoroughly check for any problems not mentioned.)
Get an appraisal (Determines the value of the property based on location, size, condition, etc.)
Get homeowner's insurance (Your lender will need this 10 days before closing.)
Confirm the closing date (Confirm the time and location and ensure the date is on schedule.)
Request funds (If applicable, request the certified funds you'll need for closing from financial institutions.)
Review closing disclosure (Lists final terms of loan, closing costs, who gets and receives money at closing.)
Conduct walk-through (Verify the condition of the house matches the contract, ensure everything was fixed.)
Go to closing (Bring a photo ID for each mortgage holder, certified funds, any additional documents.)
Get the keys and enjoy your new home!
But before we come to the end, let's talk a little more specifically about disclosures.