First time buyer...What are steps in putting in an offer?

Question

My husband and I found a great little house in Ohio. We want to put in an offer but I'm a little weary of the steps...

I know to put it contingent on a termite and house inspection, but other than that, I'm at a loss.

I also know that my real estate agent can go over these things with me but I just wanted to get an idea of what to look for in our meeting.

Thanks!

Answer 1

Work with a good Realtor. He/she can help.

A couple of things to do/keep in mind:

First, it helps greatly if you've been prequalified or preapproved with a lender. It makes your offer much stronger; the sellers will have more confidence that your offer won't fall through due to your inability to get a mortgage.

You can get preapproved or prequalified with any lender. However, my personal preference is to use a mortgage broker, who will have access to lending programs offered by multiple lenders.

When you make an offer, you should know: (1) the fair market value of the property, (2) what you're qualified for, and (3) what you're comfortable paying per month. Regarding fair market value, when you're interviewing Realtors ask each to perform a CMA (competitive market analysis). It's not as formal as an appraisal, but similar in that it'll compare the house you're interested in to other nearby comparable houses.

We already talked about being prequalified or preapproved; that's how much a lender will lend you. Then you have to figure out how much you're really comfortable spending. It might well be lower than the preapproved figure.

The amount you spend on the house should be no higher than the lowest of: (1) fair market value; (2) what you're preapproved for; or (3) what you're comfortable spending.

In turn, your offer should be no higher than the lowest of those three numbers.

There are various contingencies that'll be put into the contract. These vary somewhat, depending on geographic area. But always include a home inspection. And include a financing contingency--your contract is contingent on your ability to obtain satisfactory financing. If you own a house that you'll need to sell, in today's market it's usually advisable to put a home sale contingency in. It weakens your offer, but protects you.

If the home inspection uncovers something serious, you'll then want to have an inspection by someone who specializes in the area of concern--an electrician, a structural engineer, etc.

So, first two steps: Get preapproved or prequalified with a lender. And start interviewing Realtors. A final point: You absolutely need your own Realtor. Do not rely on, or plan on using, the agent representing the sellers. It's legal and (so long as the agent informs you of dual agency) it's ethical, but it's very much to your advantage to have your own agent.

Hope that helps.

Answer 2

You will write up an offer, definitely put in the inspections, you will also need to make it contingent on getting your mortgage.  Also list any items you want like appliances, draperies, etc.  Put in the date the seller must respond by and the date you would want to settle on the house. Good luck

Answer 3

First of all, make sure that you have a trust-worthy agent. There are a lot of people who got duped by such people and suffered terribly after that. One important thing to do is identify what mortgage type will best work for your incomes. Ask your agents about this, as most would not bother to provide you with all info as long as they make a sale.

These sites will be very helpful, I suggest you visit them:

www.new.housingassistancenetwork.com/

www.mortgages-for-everyone.com/

Answer 4

best advice is to ask the real estate agent. it would be in their best interest to represent you to the best of their ability. keep in mind that buyer's agents don't get paid by the buyer. seller's and buyer's agents both split their commission from the seller.  

Answer 5

One of the most important things is getting pre-approved with a lender.  I did my mortgage throught NationsChoice Bank and they had the best rates and customer service

You can apply for a loan on their website:

www.asmartloan.com

Good luck!

Answer 6

The first thing you have to do is determine what you are willing to offer. Next, you need to put it in writing as well as provide a deposit. Depending upon the price of the home and the size of your down payment, the contract may specify a date when additional monies would be placed into the trust account. At this time, the mortgage company or your attorney will order a title search and insurance.

Unless you are an all-cash buyer, as part of your sales contract, you generally will agree to obtain financing within a specified period. This period may be extended with the seller's agreement. If you are unable to secure financing, the contract becomes null and void.

Usually, after you've completed these steps, you'll move on to the little things like a termite and home inspection.

Answer 7

You’ll want to know what you’re willing to offer, what contingencies you want (including a contingency on financing unless you’re paying cash). Have your checkbook ready for your earnest money & your preapproval letter from your lender.

Make sure your agent makes a copy of your preapproval letter to send over, and blacks out the actual amount you’re approved for if it’s much more than your offer price. It hurts your negotiating power if you offer $120K on a house when your letter says you can get $150K. That pretty much begs the seller to counter you much higher.

Answer 8

Oh this is easy. whats your budget on buying a house tell the real estate agent what it is and then i think you just take what he offers or haggle with the price but i really dont know i am just a kid.

nvm just listen to "Q" the one answer above me.

Answer 9

it really is pretty simple.  you just need to tell your real estate agent how much your offer is and the contingencies you mentioned, they put it in a document and they send to the seller/agent.