Jena Khabazeh - - KELLER WILLIAMS REALTY / Merrimack Valley | Westford,Chelmsford,Concord, Carlisle


An offer to purchase represents a key milestone in the homebuying journey. Ultimately, it helps to plan ahead to ensure you're ready to submit a homebuying proposal. Because if you know what it takes to put together a competitive offer to purchase a house, you can boost the likelihood that a home seller accepts your proposal.

Now, let's take a look at three tips to help you get ready to submit an offer to purchase.

1. Study the Housing Market

The housing market fluctuates frequently. As such, you may enter a real estate market that favors buyers but slowly shifts into sellers' favor, or vice-versa. But if you examine the real estate sector closely, you can differentiate a buyer's market from a seller's one and submit an offer to purchase that accounts for the current housing market's conditions.

If homes are selling quickly at or above their initial asking prices, you may be working in a seller's market. Comparatively, if houses linger on the real estate market for many weeks or months before they sell, you may be operating in a buyer's market. As you start to craft an offer to purchase a house, you should analyze the real estate market. By doing so, you can submit an offer to purchase that matches a seller's expectations.

2. Get Your Finances in Order

Entering the housing market with a budget in hand usually is beneficial. If you get pre-approved for a mortgage, you can narrow your house search and stick to a budget as you pursue your dream residence.

Banks and credit unions can teach you everything you need to know about fixed- and adjustable-rate mortgages. Perhaps best of all, lenders employ mortgage specialists who can respond to your mortgage concerns and questions. If you collaborate with a lender today, you can get the financing you need to buy a house. Also, you can conduct a search for homes that fall within your price range and reduce the risk of submitting an offer to purchase that surpasses your budget.

3. Avoid a "Lowball" Offer

Submitting a "lowball" offer to purchase a home may seem like a good idea at first. Yet submitting a homebuying proposal that falls short of a seller's expectations is unlikely to help you acquire your dream house.

In most instances, a seller will instantly reject a lowball offer to purchase. And if you receive an immediate "No" from a seller, you risk missing out on the opportunity to purchase your ideal residence.

Allocate time and resources to craft a competitive homebuying proposal – you'll be glad you did. Otherwise, you run the risk of putting together a lowball offer that will miss the mark with a seller and force you to look elsewhere to purchase a house.

Lastly, if you need extra assistance as you perform a house search, you may want to hire a real estate agent. By employing a real estate agent, you should have no trouble crafting a competitive offer to purchase any home, regardless of the housing market's conditions.


This Single-Family in Westford, MA recently sold for $749,900. This Colonial style home was sold by Jena Khabazeh - KELLER WILLIAMS REALTY / Merrimack Valley.


2 Morrison Ln, Westford, MA 01886

Single-Family

$749,900
Price
$749,900
Sale Price

8
Rooms
4
Beds
2/1
Full/Half Baths
This beautiful colonial in Greystone Estates is everything you're looking for! Cared for by the original owners, this home is the perfect blend of elegance and comfort. The sun filled eat in kitchen features stainless steel appliances & granite countertops with custom cabinets. The slider in the kitchen takes you to the sun room over looking the meticulously maintained backyard. The living room, dining room & cathedral living have hardwood floors. The family room features a wood fireplace and skylights to bring in even more natural light. The first floor also features a half bath with laundry and a home office. The second floor boasts four generously sized bedrooms including a master suite with his & her closets and a full master bath. Completing the second floor is a second full bath to accommodate the other bedrooms.The lower level has a bonus room, workshop & ample storage space as well as access to the two car garage with exterior access. This home has it ALL!

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Photo by Free-Photos via Pixabay

When you’re self-employed, it’s difficult to decide whether you are ready to buy a house. After all, your income might come in spurts instead of having a regular check every week or two. Being prepared for the mortgage process increases the chance that your application will be approved. Self-employed people have more hurdles to jump because of the nature of their income, even those that make six or more figures.>

Difficulties in Qualifying for a Mortgage

Since you’ve probably done a ton of research on mortgages and finding your dream home, you already know the basics—make sure your credit is good, how much down payment you’ll need and what you are able to afford. You may have a pretty good idea of what documents you need to provide and already have them ready. However, those pesky tax returns might come back to bite you.

Tax Returns

The biggest problem in qualifying for a mortgage when you’re self-employed is your tax returns. Most business people take every deduction allowed. However, while that’s great for your pocket since you pay less tax, it’s bad for applying for a mortgage.

Part of your self-employment tax returns is your expenses. You probably claim things like utilities, cell phones, business meals and travel and have a ton of depreciation. When a lender looks at the tax returns, it doesn’t add those things back in—except for depreciation. While you might make $300,000, your adjusted gross income on your tax return is going to be the number the lender looks at. If it’s $10,000, you’re not going to qualify for that loan.

Alternative Methods

You could amend your taxes or you could wait for two years and not claim anything on your taxes. However, that means you will be paying heavily to the IRS. Or, you could find a lender who does non-conforming loans. Some lenders are sympathetic to self-employed people and will use other methods of verifying income. Some banks may look at your deposits for a year instead. They’ll still ask for your tax returns, but will not use them to qualify your income.

Debt-to-Income Ratio

Your tax returns help lenders figure your debt-to-income ratio. While lenders are supposed to use your gross income, that does not hold true with self-employed borrowers. Lenders look at the adjusted gross income on your tax returns. That number is often lower than net income because of the expenses you deduct.

A lender adds up your debts and divides that number by your adjusted gross income. If you have a proposed mortgage payment of $1,200, a car payment of $650 and other credit lines, including credit cards of $500, you have $2,350 in debt. If your self-employed monthly income is $8,000, your debt-to-income ratio should be about 29 percent. But wait a second. That’s not the number on your tax returns.

If the adjusted gross income on the last two years of tax returns is $4,000 and $2,500 respectively, then your average monthly income is going to be $3,250 (add the two together, then divide by 2). That means your debt-to-income is actually 72 percent. The highest a lender will “give” you is 43 percent, though most will only consider your application if your debt-to-income is 39 percent not including your new mortgage and 33 percent including your new mortgage. In this example, a lender who uses deposits instead of tax returns will show a debt-to-income ratio of 29 percent.

If you are ready to purchase a house and want to learn more about qualifying for a loan, feel free to reach out. Together, we'll be able to get you into the home of your dreams, despite the hurdles.


This Single-Family in Tyngsborough, MA recently sold for $520,000. This Contemporary style home was sold by Jena Khabazeh - KELLER WILLIAMS REALTY / Merrimack Valley.


4 Thoreau Lane, Tyngsborough, MA 01879

Single-Family

$529,900
Price
$520,000
Sale Price

10
Rooms
3
Beds
3/1
Full/Half Baths
WOW, What a spacious home!!! Beautiful 55 and over community... The Living room features a cathedral living room with gas fireplace , and is open to the dining room that leads to the sun-room, and open to the kitchen with granite counters and upgraded appliances, Spacious first floor master suite with large full bath with tiled shower stall, finishing off the first floor is the private office/den with hardwood flooring, The second floor feature two bedrooms and a full bath plus a large game room, and the lower level finished basement has a huge playroom with counters and sink, the other room would make a super home gym, and a full bath finishes off the basement space, two storage rooms, Navien on demand hot water heater has been added, as well as a 20,000 watt whole house natural gas generator with automatic switch.... This unit is ready for you to make it your home! Call for a private showing today...

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23 Acton St, Maynard, MA 01754

Condo

$269,000
Price

4
Rooms
4
Beds
1/1
Full/Half Baths
Here is an opportunity to bring your own design and style ideas while building some sweat equity. This four bedroom offers an open floor plan from the kitchen to dining room with a half bath . The main level also has a living room with hardwood floors that has an abundance of natural light flowing in. The second floor consists of four generous sized bedrooms and a full bath. The full attic and unfinished basement leave you with plenty of space for additional storage. All of this with no condo fee! A pleasant walk to the center of town with all the conveniences. Minutes to the acton train and commuter routes too. This gem is one to see right away!
Open House
No scheduled Open Houses

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