March 17th, 2016 5:55 AM by Jackie A. Graves, President
found the home you've been searching for and now it's time to make your home
purchase offer. What's your next step and who's going to guide you through the
When you're ready to make an offer, your real estate agent will
take center stage, walking you though the following steps and communicating
closely with the seller's agent and you. Here's how the offer process
Step 1: Determining Your
Your real estate agent will help you determine a price that's
fair, based on their experience and important considerations, including:
Recent sales prices of similar homes in the neighborhood
The condition of the home
What you can comfortably afford
Step 2: Submitting an Offer
Once you've determined your price, your agent will draw up an
offer, or purchase agreement, to submit to the seller's real estate agent. This
offer will include your agreed upon purchase price and terms and conditions of
the purchase, including:
Your target closing date
Provisions for certain fees
A deadline for the seller to accept or counter your offer,
typically one to two days
writing your offer, it's highly recommended that you make the home purchase
contingent on the home inspection and appraisal.
Step 3: Negotiating the Offer
Oftentimes, the seller will counter your offer, typically asking
for a higher purchase price or to move 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 counter offer, you or the
seller have the option to accept, reject or counter it again.
Step 4: Finalizing the
The contract is considered final when both parties agree to all
terms and sign the written offer.
next? You'll need to provide your lender with a copy of the signed
purchase agreement to finalize the loan application process. As always,
lean on your team for any questions or concerns along
the way – it's their job and they're there to help.
this series to learn more about how things work in the mortgage industry, from the
secondary mortgage market to closing on your loan.
Courtesy of Freddie Mac -To view the original article click here