For any reader who has searched and looked and finally found a home that they like and wish to buy, congratulations. If the prospective buyer is a first time home buyer, then he or she will likely be feeling nervous and unsure of what to expect in making the offer. The following paragraphs cover the things that such a person needs to know about making an offer on his or her first home, and in particular as it pertains to the beautiful small city of Rocklin in northern California. |
Where A Person Begins With Making A Home Offer
The good news for the first time home buyer is that this is not a completely go it alone process. The prospective home buyer's real estate agent will help him or her to make the offer. The offer will feature a number of different pieces of information in it, as follows:
* A full legal description of the house and property in question * The financing arrangements and down payment that are relevant * The total amount of earnest money * The price that the buyer is offering * The prospective move in date * The proposed date of closing * The full details of the purchase deal * The amount of time for which the offer is in effect
Determining the Initial Offer Amount
It is important to keep in mind that the real estate agent is commonly working on behalf of the seller. Because of this, it is a wise idea to pointedly request that the agent keep the buyer's information and discussions fully confidential. There is nothing wrong with carefully listening to the advice of the real estate agent. In the end, the buyer ought to go with his or her own feelings and instincts in determining what is a fair price for the property under discussion. Such an offer really should include the consideration of a few different elements, such as the following:
- What are other homes in the area actually selling for? - What is the real condition of the home presently? - How long has this house been for sale on the market? - What are the financing terms that the bank is offering to the buyer? - What is the real situation of the seller, or will he accept a lower amount in order to secure the deal?
Negotiating the Final Deal
When it comes time for the buyer to seriously put in an offer, then he or she really should possess a solid working idea of the home's fair value, as well as what the individual can realistically afford to pay. The buyer should furthermore be ready to engage in negotiations that are both give and take. This is quite typical when a person is purchasing a house. Commonly, a serious buyer and motivated seller will haggle back and forth until reaching the point where they can settle on a final price. One critical thing that the first time buyer needs to keep in the back of his or her mind is that arriving at a commitment of sale will require that the seller agrees on a satisfactory contract, and not only on the buyer making the offer.
FHA First Time Home Buyer Programs
Something that a first time home buyer looking for Rocklin CA real estate who is making an offer on a house may have forgotten about in his or her calculations is the FHA backed first time home buyer program. The Federal Housing Administration offers several helpful first time home buyer programs for which such buyers can qualify. These buyers can benefit from the programs in the following several ways:
* Lower down payments - many first time home buyers will simply not have a big enough down payment on hand. A great number of lenders want a full twenty percent to put down on a home in Rocklin, northern California. Using the FHA first time home buyer program, this down payment is commonly reduced significantly. It can drop to as little as 3.5% of the purchase price of the home.
* Lower closing costs - There are a number of situations where closing costs are cripplingly high. They can range to a whopping five percent or even more of the home price. With FHA programs, these closing costs are greatly reduced. This makes the Rocklin, northern California home price more affordable for the buyer.
* Easier qualifying for credit - First time Rocklin area home buyers that have credit scores which are lower than 650 can still be approved for FHA backed loans. This is getting harder and harder to achieve using conventional loans and lending institutions.
A last advantage to being a first time home buyer centers around the first time home buyer tax credits that the government routinely offers. This amount can be as high as $8,000, and it is refunded to a first time home buyer after taxes are filed. Because of this credit, the Rocklin, California buyer may be able to afford significantly more house.
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