5 Steps to having a home offer accepted in a Seller's Market.
In today's market, where multiple offers are common place, it's important to stand out as THE solid option.
Here are a few tips to help:
1. On your Pre Approval letter, ask your lender to pre approve you for higher than the home you want to purchase. If you make an offer at $300,000 and your pre approval letter is as $300,000 the seller may think your loan ratios could be tight. It's better to offer a Pre Approval letter that says $350,000 on that $300,000 offer. You will show the seller you are highly qualified. See Video below:
2. On your Pre Approval letter, have your lender show your down payment options. If you only want to put down 5%, but have the ability to put down 20%, have your lender state on the Pre Approval letter that you qualify with either 20% or 5% down. This will let a seller know that just because your offer was with 5% down, that you have the means for a larger down payment, and therefore, are of less risk of falling out of contract.
3. Have your mortgage loan officer call the listing agent right when an offer is made. Ask them to let the listing agent know you are of good credit standing, that the lender has reviewed income, assets, and tax returns. This not only lets the listing agent know that the basis of the mortgage should be good, but also shows that there will be good communications through the loan process.
4. Get A Full Credit Approval. Turn your documentation in to the lender, and ask them to underwrite to gain Credit Approval. Then the loan will be only subject to appraisal. Sellers love buyers who have already been through underwriting.
It's a Seller's Market right now, and the rules of the game have changed. Learn the rules, and win the game.
Marcel Deitrich
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