If you’re a first-time homebuyer, making an offer on a house can feel like a big step. You’ve already decided how much home you can afford and have an idea of where you’d like to live, but then what? Here’s some insight on what to expect next.
How do you make an offer on a house?
If you haven’t already, you should get pre-approved for a mortgage. Pre-approval estimates how much money a lender is willing to loan you in order to buy a home. If you’re pre-approved when you make an offer, the seller may take your offer more seriously. Pre-approval gives the seller confidence that you’re a legitimate buyer and that you will be approved for a mortgage large enough to buy their house.
The next step is to tell your realtor that you’d like to make an offer on a house. They will draft an offer letter with a price and proof of your pre-approval status. Your offer should include more than just your buying price. It’s also a good idea to include contingencies based on the pending results of the home inspection, appraisal, or other circumstances that might prevent you from going through with the sale. Home inspections or appraisals can also help you negotiate a lower sale price if the home needs repairs or the sale price is higher than the appraisal.
You will also likely need to include a good faith deposit (also known as earnest money) with your offer. This can give the seller confidence that you’re a committed buyer and make your bid more attractive.
What happens after you make an offer on a house?
If the seller receives more than one offer, you may need to take additional negotiating steps to make your offer more appealing. This can include flexibility on the move-in date, changing the terms of your contingencies, or even a counteroffer.
Once your offer has been accepted, it’s time to work with a lender on completing your formal mortgage application and providing income and financial documents. Learn more about how to apply for a mortgage.
After you’ve completed your application, the mortgage underwriting process begins which hopefully results in your applications being approved! Learn more about what happens after you apply for a mortgage.
Talk to a Loan Advisor
Freedom Mortgage can help you buy a home with conventional, VA, FHA, and USDA loans. Would you like to learn more about your mortgage options? To speak to a Freedom Mortgage Loan Advisor, visit our Get Started page or call 877-220-5533.