Client shaking mortgage brokers hand Client shaking mortgage brokers hand
Client shaking mortgage brokers hand

So, you’ve decided to make an offer on a property – congratulations! For first time home buyers, especially in today’s economic environment, this can be an exciting and daunting experience wrapped up into one.

To ensure everything goes smoothly during this crucial step in the home buying process, it’s important to have a solid understanding of how the offer process works, and what you need to do to secure the best financing option for your home purchase.

1. Before Making an Offer

Budget vs. Market Value

It’s likely that you have a budget or a max limit in mind for your new home purchase. However, just because you’re willing to spend a certain amount on purchasing your home, doesn’t mean that’s how much you should be offering. Before making an offer, it’s crucial to research the market to determine a suitable offer price.

Understanding The Market

Enlisting the help of a local mortgage broker is a great way to get a better understanding of the current market conditions, such as property values, interest rates and financing options. Taking the current conditions into consideration, a mortgage broker will help you determine the best offer price based on your personal financial situation and preferences.

Once you’ve determined your offer price, your local mortgage broker can then help you submit an official offer to the seller with all the necessary information to help you stand out.

2. Preparing The Offer

Making an offer is more than just a number. A well-crafted offer is essential if you’re serious about standing out to the seller.

Any offer submitted should specify the deposit amount and set a deadline for acceptance, and detail any special conditions, such as finance approval or building inspection. However, if you’re looking to make a competitive offer, it’s important to really think about how you’ll address each criteria.

Strategies For A Competitive Offer

Some strategies are offering a higher deposit, being flexible on the closing date, or writing a personal letter to the seller. Your mortgage broker at Fox Home Loans should be well equipped to provide guidance on the best strategies based on your individual situation.


3. Negotiating The Offer

It’s not uncommon for the seller to come back with a counter-offer, and this is where negotiations usually begin.

How Negotiations Work

Unfortunately, unless the seller has motivation to sell quickly, you’ll have to be prepared to compromise. Offer negotiations often involve either extending the settlement period, waiving certain conditions, or increasing the deposit amount. Your personal mortgage broker from Fox Home Loans will work with you to understand the implications of each one and map out the best course of action for your situation.

4. Accepting The Offer

If a mutual agreement is reached, the seller will then accept the offer. This is formalised by signing a purchase agreement, a legally binding document that details the terms and conditions of the sale.

H3: Checking The Purchase Agreement

The agreed upon purchase price, deposit amount, settlement period, and any special conditions will all be outlined in the document, and it’s important to review these carefully to ensure they’re correct.

After signing the purchase agreement, the next step is to begin the mortgage application process. Working closely with your mortgage broker throughout this process will help to ensure a successful application.

Submitting A Home Loan Application

To submit a home loan application, you’ll need to provide detailed financial information regarding your income, expenses, assets and any other financial information that may be relevant. You should also be prepared for the lended to assess your creditworthiness with a credit check.

Once the lender has approved you as an applicant, the last step is for them to assess the property to confirm its value is aligned with the purchase price. With this considered, the lender will then determine the total amount they’re willing to lend you to purchase the property.

Once your offer has been accepted and your home loan application has been approved, you’re ready to move onto the settlement process!

5. Ready to Make an Offer?

Figuring out the process of how to make an offer on a house or apartment can seem daunting and stressful, whether you’re a first time buyer or are re-entering the market. Working with an experienced mortgage broker can provide the support and guidance you need during every step of the home-buying process. With the peace of mind that everything is in the hands of a professional, making an offer on a house can be an exciting and enjoyable experience.

When looking for a mortgage broker to help you make an offer on a property, look for a broker that not only has market knowledge and experience with processes, but one that has your best interest in mind. This way, you can be sure that they understand your goals and will tailor their service according to your individual circumstances.

If you’re considering making an offer on a property, contact Fox Home Loans today to schedule a consultation with one of our experienced mortgage brokers on the Sunshine Coast. Our team of experts can provide personalised guidance and support throughout the homebuying process.