Purchasing a home is a large financial move and there is a ton of details that go into the process; including everything from getting a mortgage to finding the right house in the right neighborhood within the area and location your desire to purchase in. Then there’s crafting the offer and packaging it in a way that the seller of a property says yes to you. Here’s some things you might want to consider when making an offer to purchase a house…
Let’s assume for our purposes that you already have your mortgage pre-approval intact. The mortgage lender has pulled a copy of your credit, you supplied them with all the supporting financial documentation and they have run your file through automated underwriting and have fully bulletproofed your financial package so when you submit an offer you’re as good as cash. Next is submitting an offer to buy the home. Here are some tips to help you be successful in that endeavor…
It’s all about who you know. This is where experience matters. Does your lender know your buyer’s agent? Have they worked together before? If yes, this can be a huge advantage. Does the lender know the listing agent on the other side of the transaction and have they worked together before? Is there a pre-existing relationship? People like doing business with people that they like know and trust. If you have a lender who is out of the area, newer, and doesn’t know the agents on either side of the transaction, you’re going to have a harder time getting your offer accepted. It’s a good thing if the lender knows both agents or at least one of the agents on either side of the transaction and or has a reputation locally for delivering.
How strong is your pre-approval? Is your pre-approval strong enough to make a 15-day or a 20-day close of escrow? If yes, this can also work to your favor as sometimes sellers want to close escrow on a house very quickly and you being able to perform in the time-frame in which they want can be a good thing. The opposite is also could happen maybe the seller needs a little bit longer and your agreement in being patient could help you win. The idea is you want to acquiesce to whatever the seller needs with regards to time frames when possible.
Can your lender offer you a loan commitment at the beginning of the process? This means no loan contingency. This is super aggressive and makes a big bold statement to the other side of the transaction that your offer is as good as cash in the bank. If your lender can’t do it? Find one that will. You don’t have time to play games with a lender who can’t get their act together. Find an accountable mortgage lender.
Is your lender willing to call the listing agent? Put yourself in the shoes of the listing agent, they need to vet all the offers to present to their seller. That’s potentially a lot of homework and fair amount of extra due diligence needed on their part. Why not have your lender call them and make it easier for them to say yes to you? This goes a long way and can even help ink a deal especially if that local lender knows that local listing agent and perhaps has worked with them before.
Does your lender clearly communicate how they will update all parties in an escrow? Ask any realtor and they will tell you the number one most important thing is communication by far. It’s the only thing that matters in a real estate transaction besides adhering to dates and timelines. Ask your lender how they communicate. Hint the answer you are looking for is they update you and both realtors weekly. You want a lender who’s willing to update all the parties regularly in the process making it easier on everybody, so emotions don’t get involved and dates are met. If the lender doesn’t clearly offer this style of communication, find a new one.
You want a mortgage lender who knows how to do purchase business, who knows the value of working with the local agent and understands that reputation is everything.
Scott Sheldon is a local mortgage lender, with a decade of experience helping consumers purchase and refinance primary homes second homes and investment properties. Learn more at www.sonomacountymortgages.com.