Three Keys To Getting Your Dream Home Now

Looking for a new home is both exciting and nerve wrecking.  Will you ever find the right place?  Can you afford the payments?  How much will the seller negotiate?  Three things you can do to improve your chances of getting your offer accepted are simple and easy.  They just require you to plan ahead and be realistic.{[}]{[}]First is apply for a mortgage, not just find out what you can qualify for.  Know that you can get a loan and for how much.  Have a letter from the lender stating you have applied for loan and it has been approved.  Now you can remove the financing contingency from the offer on your dream home.  It is one less concern for the seller.  Sellers do not want to take their house off the market to see if you can get a mortgage.{[}]{[}]Second is earnest money.  Earnest money is good faith money that you are going to buy the house.  It goes towards the down payment and either the selling broker or listing broker will hold the earnest money until closing.  The way to improve your offer on your dream home is offering more than $500 to $1000.  Earnest money should be about 2% of the price.  That shows the seller you are serious about the home, will come to closing, and have the cash for the down payment.  Example:  2% of $150,000 is $3000. Purchasing a $150,ooo with a 96.5% FHA mortgage the down payment is $5250.00.{[}]{[}]Third thing you can do to get your offer accepted by the seller  is be aware of what your true offer is.  If the house is priced at $150,000.00, you offer $135,000 and ask the seller to pay 3% closing cost ($4500), a home warranty ($450), and leave the refrigerator, washer, dryer, and swing set ($1000).  The true offer is $150,000 – $20,000 – $4,500 -$ 450 -$ 1000 =$124,050 not $135,000.  Sellers are generally prepared to negotiate the price of their homes; however, it is important to know if their asking price a fair price.  Is the asking price at the top range for the community needing lots of work and small floor plan or is it at the bottom range and in good condition and great location.  It is important for the seller to feel comfortable with an offer that has been accepted.{[}]{[}]When purchasing a home determine what is most important to you – what the seller is willing to help pay for or getting the lowest price.  To get your offer accepted, treat the seller with respect and be fair.  Every buyer wants the best deal but for just a moment step in the sellers’ shoes and you will get the house of your dreams.