For those preparing to enter the home buying fray, competitive markets and bidding wars await. It’s no longer a given that a standard full-price offer on a home is enough to seal the deal. You need to be ready to go above and beyond to lock up the home of your dreams.
Get preapproved. In today’s competitive market having a fully underwritten pre-approval letter can set your offer apart from the competition. Your pre-approval is approaching its expiration date. If you are still searching for your dream home I can, and would be glad to, help you get an updated pre-approval letter so that you stay in the best bargaining position when making an offer.
Make a larger down payment than is required. As a general rule, be ready to pay 20% of the home’s price up front as a down payment. The 20% rule is not hard and fast, especially for first-time homebuyers. You can still afford a home while offering less up front. But a large down payment carries the two-sided perk of showing good faith to a seller, while also potentially lowering your monthly payments. Any amount over the asking price on a down payment will grab the attention of sellers and lenders, and will make your offer more enticing.
Expedite the inspection, or buy “as is.” Having an offer that is contingent upon an inspection can be a roadblock for those hoping to sell their home. Inspections can drag on, and offers can change as potential buyers make requests for fixes and upgrades. If you are intent upon conducting an inspection of your own, have your inspector ready to go within a week. If you agree to buy a home as is, you can also knock your offer price down to cover for whatever upgrades a home might need. Either way, the time commitment of getting a home perfectly tailored to your standards before making an offer can scare away some sellers. Be sure you are making the transaction as hassle-free as you can.
Get your Mortgage Loan Officer involved. A Mortgage Loan Officer can be your greatest ally when making an offer on your dream home. Keeping them involved throughout the home buying process can help relieve sellers’ potential doubts about financing on your offer. Your MLO can also streamline things by working with your real estate agent—and the seller’s agent—to answer questions and provide references. First Tech’s trusted team of home loan officers can help no matter where you are in your home buying process.