Finding Your Dream Home - Step 2 of the Mortgage Process
The thought of a new home is exciting. It’s the beginning to a new chapter in life; a place where you can plant your roots. The process of finding your home should be simple, and fun. Thanks to getting pre-approved that process got a little easier! You’ve got the help of a great realtor and know exactly what you can afford. Let’s go get that house!
Before you start touring homes take a little time to create a list of the most important qualities you want in your future home. Think about which neighborhoods you want to live in. How big of a yard you want. Do you want a garage, a gourmet kitchen, extra bedrooms? After creating this list, share it with your realtor. The more they know, the better your realtor can help you find what you are looking for.
As you walk through each home you’ll notice things that you love, or don’t love, about their unique designs. Make sure to write down the pros and cons of each home. That list will become useful when you narrow down the list of potential homes. It’s also a great idea to check the essentials! Inspecting the roof or looking at the furnace isn’t necessarily fun, but these essential components can be costly if they need repair so verify that they are in good shape.
The official offer: Once you find the perfect home, it’s time to write an offer with the help of your realtor. Remember to review the price, extras (like including appliances), and contingencies such as a home inspection. The purchase agreement (formal offer) is legally binding so it’s important to verify that all aspects of your offer are included. If something gets left out, it could be difficult to add at a later time.
When you submit your offer, the seller will most likely accept it or return with a counteroffer. This is where the pre-approval letter from step one becomes extremely useful. It tells the seller that you are already qualified to purchase their home, which increases your chance of getting an accepted offer. A pre-approval letter also increases your bargaining power in the case that negotiating is required. Remember that your realtor will also fight to get you the best deal, whether negotiations ensue or the initial offer is accepted.
What’s next? Congratulations on getting an accepted offer! How exciting! Now it’s time to meet your loan officer again and start a loan application.