01 Sep How to Strengthen Buying Position
At City Creek Mortgage, we’re here to tell you that the actual securing of a mortgage loan is only half of the home buying process. We’re also here to help with the other half: Securing a great home based on the financial elements involved in your situation.
For some home buyers, this is the tougher end of things. Some find that they keep coming up short in what remains a seller’s market – they just keep losing out to better-qualified buyers or people with stronger offers. Luckily, there are tactics you can take to help improve your position here. Let’s look at a few.
Given that it’s a seller’s market, you need to be prepared to move quickly when you see a home you like. Hemming and hawing is a quick way to find yourself undercut by another buyer – the quicker you can go from escrow to closing out a deal, the better. If you’re able to pay cash rather than escrow, this will improve your situation even more. Now, be careful not to rush the escrow or mortgage process – now allowing the proper time to close can blow up the transaction.
Prep For Counters
Know that if you receive a counter-offer from a seller, this isn’t meant in an insulting way. It’s likely because the seller has multiple offers, and is looking to get the best deal.
However, be aware that the best deal doesn’t always simply mean the most money. Some sellers might be in escrow and have other concerns, or might accept a lower offer from a better-qualified or more prepared buyer. Many sellers aren’t in a position to risk their position on an iffy buyer, and will attach a lot of importance to buyer quality. This is where having an experienced team behind you can go a long way – it shows you’re prepared and well-informed.
One big part of becoming a better buyer is undergoing real pre-approval, including significant documentation and background checks. This step will tell you what you can afford, and will make your offer appear stronger in this market. A strong, human-underwritten mortgage commitment will help you win purchase offers over comparable applicants.