Make Sure Your Offer Stands Out

 In First-Time Home Buyers, Qualifying for a Mortgage

The Metro Denver real estate market is hot at the moment, with many more people wanting to buy a house than there are people selling a house.  That means when you make an offer on a house, there will probably be a number of other people also making offers on that same house.

How do you stand out and get your offer accepted?  The easiest way, of course, is to offer more money than everyone else, but let’s suppose there are others willing to bid up the price, too.  How do you make sure your offer stands out if everyone is willing to pay more than the listing price?

Here’s a great way to make sure your offer is better than the rest.

When you call a lender for a mortgage pre-approval, the lender knows how much you qualify for by running your loan file (your credit report and all the information on your loan application) through underwriting software supplied by Fannie Mae and Freddie Mac.  These are the two companies that purchase most of the mortgages in the country, and if a lender uses their software and the loan receives an approval from the software, Fannie Mae and Freddie Mac agree to purchase the loan from the lender.  If the lender knows they can sell the loan to Fannie or Freddie, they will give you the mortgage.  

However, there is another step that must be completed first, and that is when a human underwriter checks to make sure the loan officer who completed the loan application and ran the file through the underwriting software did their job correctly.  Until the file has been checked by an underwriter, it isn’t officially approved by the lender.  

Real estate agents know that many loan officers don’t do their jobs very well.  Deals fall apart all the time when a loan file gets to underwriting.  There is a really easy way to make sure a deal doesn’t fall apart, though.  All you have to do is make sure an underwriter reviews and approves the loan before you make an offer.  Then you are virtually guaranteed that your loan will close.

Not every lender offers this service, but we do.  We send you loan file to underwriting, after you have been pre-approved by the underwriting software, but before you make an offer on a house, and we can get an approval from underwriting. 

If you have a pre-approval letter that says your loan file has already been approved by an underwriter, your offer will stand out from the rest.  It shortens the time needed to close the loan, and it gives the seller the peace of mind that comes with knowing the deal will close.  

There is no charge for this service, and it only takes about ten days to get the approval from underwriting.  The homebuyers we work with who do this get their offers accepted at a much higher rate than those who do not.  The biggest excuse we hear from our clients about why they don’t want to send their loans to underwriting before making an offer is that they want to buy a house immediately, not in two weeks.  Very often, not spending that little amount of time up-front getting an underwriter to approve your loan results in months of unaccepted offers.  It’s almost never faster to submit offer after offer, rather than getting the approval first.

As a side note, 100% of our loans close, even if we don’t send the loan file to underwriting before you make an offer.  That’s because we know how to do our jobs very well, and we hate to work for free.  If a loan gets denied, we don’t get paid, and working for free is not the way to run a business.  So, we make sure the loan will get approved before we send out any pre-approval letter.  However, not every real estate agent or seller knows who we are or how good a job we do, so without having an approval from an underwriter, there’s not much that separates your offer from anyone else’s, unless you just offer more than everyone else.

Want to buy a house as quickly as possible and make sure your offer gets accepted?  Spend the little amount of time up-front and get your loan approved before you make an offer.  It will really make your offer stand out from the rest.

Need a pre-approval or want to refinance and lower your existing mortgage payment?  Contact us today and see how easy it is to get a great mortgage.

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