Houston Mortgage First-Time Homebuyer – FAQ Part 3

Part 3: Making an Offer on a Home

Once you have found the perfect Houston home to suit your needs, it is time to make an offer. Before you make your offer, however, it is important to complete an inspection and to gain a better understanding of what the process of making an offer entails. With the answers to these Houston First Time Homebuyer Frequently Asked Questions (FAQs), you will be better prepared to make an offer and to complete the necessary steps in the process.

Why should I hire a home inspector?

While a home inspector will not evaluate the home in order to determine its value, the Houston inspector will check the safety and overall condition of the home. Some of the items the inspector will check include:

  • Ceilings
  • Doors
  • Electrical system
  • Floors
  • Foundation
  • HVAC system
  • Insulation and ventilation
  • Plumbing and waste disposal
  • Potential presence of pests
  • Roof
  • Walls
  • Water heater
  • Water source and quality
  • Windows

In addition to determining whether or not repairs are necessary now or in the near future, the inspector will also provide an estimate on making these necessary repairs. Armed with this information, you will be better able to determine whether or not you want to purchase the Houston area home and your Houston real estate agent will be better prepared to negotiate on your behalf. Therefore, you should either have the home inspected before you sign a written offer or you should be sure to include an inspection clause in your offer. With an inspection clause in place, you can opt out of purchasing the home if serious problems are found during the inspection or it may require the seller to fix any problems before you purchase the home.

Do I need to be present during the Houston home inspection?

Although you are not required to be present during the inspection, it is a good idea to be there. This way, you can learn more about the home along with the inspector and you can ask the inspector any questions that you might have. Not only can the inspector provide you with an objective opinion, but he can also tell you more about the general maintenance required on the home and its systems.

Do I just need one inspection, or are there other types of Houston home inspections I should consider?

A general Houston home inspection will cover many areas, but it typically will not involve inspecting certain specific areas, such as testing for the presence of health-related risks or problems with the water or waste disposal system. If you are concerned about the possibility of radon gas asbestos or other specific issues, you may need to hire an additional inspector to complete the job or you may need to pay the general inspector extra in order to include these types of inspections as well.

How do I make an offer on a Houston home?

Once you have decided to make an offer, your Houston real estate agent can assist you with the process of making a formal offer. All of the following information must be included in the offer paperwork:

  •     A complete legal description of the property
  •     The amount of earnest money being paid
  •     The down payment amount and any additional Houston mortgage details
  •     The amount being offered to purchase the home
  •     The proposed closing date and move-in date
  •     The length of time the offer is valid
  •     Any other pertinent details related to the deal

How do I determine how much to offer?

While your real estate agent will be able to provide you with advice regarding how much you should offer, the final decision is up to you. Things to consider when calculating a fair price include:

  •     How much homes are selling for in the Houston area
  •     The condition of the home
  •     The amount of time the home has been on the market
  •     Expected Houston home financing terms
  •     The seller’s situation

After considering this information, you should have a good idea of what the home is worth as well as how much you can afford to pay for it. Just remember that the seller is not likely to accept your first offer, so you should be prepared for a bit of back and forth as you negotiate a different offer.

What is earnest money and how much do I need to pay toward this expense?

Earnest money is a payment made to demonstrate that you are serious about purchasing the Houston home. Therefore, the earnest money required is typically equivalent to about one to five percent of the purchase price of the home. This money will be put into an escrow account on your behalf. If your purchase offer is rejected, the money will be returned to you. If your offer is accepted, the earnest money will go toward your down payment or your closing costs.

Call today: (800) 308-8503 or (281) 305-9375 or visit us online:

http://www.HoustonMortgageTexas.com

Have a Question? Get Answers!
Ask a question. Our expert mortgage team will post an answer ASAP.

Houston Mortgage Blog | First-Time Homebuyer Houston Mortgage | Privacy & Legal
City of Houston - Housing Resource Center | Texas Department of Housing & Community Affairs

Houston Mortgage Lenders - Texas Financial Services is an Equal Housing Lender

This website marketing is not intended to offer loan services for properties in New York.

Copyright © 2017 PrimeLending, A PlainsCapital Company. PRIMELENDING NMLS ID: 13649. All rights reserved. 810 Hester's Crossing, Suite 150 | Round Rock, Texas 78681. The material provided in this mortgage website is for informational and educational purposes only and should not be construed as investment and/or mortgage advice or a commitment to lend. Although the material is deemed to be accurate and reliable, there is no guarantee of its accuracy. The material contained in the website cannot be reproduced for any use without prior written consent. The material does not represent the opinions of PrimeLending, A PlainsCapital Company.

All loans subject to credit approval. Rates and fees subject to change. Mortgage financing provided by PrimeLending, a PlainsCapital Company. Equal Housing Lender.

In accordance with Section 326 of the USA PATRIOT Act of 2001, PrimeLending is required to obtain a copy of the documents used in identifying our new account customers. This notice is being provided to you for adequate notice given under this act. * These summaries are based on a $125,000 loan amount, on a loan term of 360 months, with an interest rate of 4.00% and an annual percentage rate of 4.13%