Get Fully Approved Before Making an Offer

 In First-Time Home Buyers

If multiple offers are made on the same house, many real estate agents suggest to their sellers to consider offers in a certain order.  One common way to rank competing offers is to look at the financing the different buyers have. What can you do to make sure your offer stands out from the rest and gets accepted by the seller, other than offering more money than everyone else? Get fully approved before making an offer.

Here’s how to make sure your financing lands your offer at the top of the list. 

Ranking Competing Offers

If an offer is for cash, that will very likely be the offer that is accepted.  Next would be conventional loans, with the largest down payment offer being ranked higher than similar offers with lower down payments.  Next on the list might be government loans – FHA and VA. Last on the list would be offers with financing that involve down payment assistance programs.  The rationale behind ranking offers like this is the belief that conventional loans have a greater chance of closing, followed by government loans, and finally down payment assistance loans.  

If the lenders for each of the buyers are good, there really isn’t any difference between the strength of the various offers, only because a good lender will not tell someone they can get a loan if they can’t.  However, as we all know, there are plenty of bad lenders around. So what do you do if you have a small down payment, need to qualify using an FHA or VA loan, or – heaven forbid – you need down payment assistance?

Here’s the perfect way to move up the list, so you’re right behind the buyers who are paying cash.

Get Fully Approved Before Making an Offer

We can send your loan file to underwriting BEFORE you make an offer on a house.  After it’s fully approved by our underwriter, we can write you a pre-approval letter that says your loan is fully approved, and all you need to close the deal is a sales contract and an appraisal.  This completely takes all of the perceived risk out of your offer.  

If you have 20% or more for a down payment, it might not be worth your while to take this extra step before making an offer on a house, but for everyone else (and most of us do not have 20% down), it makes sense to take the time to make your offer as strong as possible.  

What’s the catch?  There is no catch. It doesn’t cost anything for us to do this, and it only takes a couple of weeks in most cases to get you fully approved.  Almost 100% of the people we do this for get their offers accepted right away, assuming no one else has offered more money for the house. In most cases, the couple of weeks spent getting a full loan approval up-front is much shorter than the time it takes to look at more houses and make more offers because your offers keep getting rejected by the sellers.

Very few people enjoy looking at houses for months, while offer after offer gets rejected.  Make shopping for a house enjoyable – contact us today to get fully approved.

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