Before making an offer, it helps to understand how you plan to purchase the property and what you may need to have ready. From traditional financing and cash to newer options involving cryptocurrency, this lesson walks you through the key pieces of getting prepared.
Before making an offer, one of the first things to understand is how you plan to fund your purchase. Depending on your situation, there may be more options than you realize.
Finance your purchase through a mortgage lender
Purchase using available funds without traditional mortgage financing
Some lenders offer financing that may allow eligible borrowers to use cryptocurrency holdings as part of the financing process without necessarily selling those assets.
In some transactions, digital assets such as BTC, ETH or USDC may be used as part of the purchase when the parties and service providers support it.
Before you make an offer, a lender can review your financial information and help you understand your financing options, what you may qualify for and what funds you may need.
Provide the information your lender requests and ask questions about your loan options, estimated payment and the funds you may need for your purchase.
A pre-approval letter showing that a lender has reviewed your financial information and may be willing to finance your purchase, subject to the lender’s requirements and final approval.
Knowing your financing position before you make an offer can help you understand your price range, prepare the information a seller may expect and make more confident decisions with your agent.
A seller may ask for proof of funds with your offer to show that you have the financial resources available to complete the purchase.
Proof of funds may include a bank statement, account verification or other documentation showing that sufficient funds are available for the purchase.
When cryptocurrency is involved, proof of funds may be verified differently. Depending on the transaction and service being used, digital verification tools may help confirm that sufficient digital assets are available without relying solely on a traditional bank statement.
Depending on the verification method being used, technology can help confirm that sufficient funds or digital assets are available without necessarily exposing every detail of a buyer’s holdings. This can provide proof of financial capacity while allowing certain financial information to remain private.
Earnest money is a deposit a buyer agrees to make according to the terms of the purchase agreement. It is typically deposited after the offer is accepted and shows the seller that the buyer intends to move forward with the purchase.
The amount of earnest money, when it is due and where it will be deposited are established as part of your transaction. Your real estate agent can explain how earnest money works and help you understand what you’re agreeing to before you decide what to include in your offer.
Depending on the transaction and service being used, digital tools can help you and your agent keep track of earnest money instructions, due dates and deposit confirmation—making it easier to see when this important step has been completed.
Before your agent prepares an offer, it helps to have the key pieces of your purchase plan ready. That way, you and your agent can focus on the decisions that will shape your offer.
Digital transaction tools can help your agent keep important information and documents organized and accessible, making it easier to have what’s needed when it’s time to prepare your offer.
You’ve found a property. You know how you plan to purchase it. And you’ve taken steps to show that you’re financially prepared.
Your real estate agent helps you look at the price, terms, contingencies and other decisions that will shape your offer—and helps you understand what you’re agreeing to before the offer is prepared and submitted.
Next, you’ll see how you and your agent decide the terms of your offer, how your agent prepares and submits it, and how digital tools can help you stay connected as the seller receives, reviews and responds to it.
