The Best and Strongest Offers
December 13, 2012
If you are wanting to buy a house, you had better be prepared to make your offer the best offer your financial situation will allow. We are in an environment of multiple offers and of agent/seller demands for proof of your ability to complete the transaction. This is not a real estate market where the buyers are in charge.
If you are looking at properties and wanting to actually buy a property, there are some important documents you must have when you submit your offer. No longer does an offer with a 20% down payment put you ahead of an offer with a 3.5% down payment. While your 20% down might give you an edge, these other supporting documents are absolutely necessary.
1) A Pre Approval letter from a lender. Perhaps even a Pre Aprroval from a lender specified by the agent/seller. (The agent/seller cannot make you use this specified lender but it does seem that having their lender interview and check you out can be a condition of acceptance.)
2) Your Pre Approval letter must contain your FICO scores.
3) Proof of funds. This can be a bank statement showing that you have the needed funds for your down payment and your costs of sale. It could be a statement from your stock broker showing sufficient assets to make the down payment and costs. (This may be questioned if you are planning to sell some assets to obtain the cash necessary.)
Without the above documentation, your offer may be refused. Since it may take a bit of time to locate the property you wish to buy, keep track of the dates on these documents. Once they are 30 days or more old, they need to be updated.
With the small number of properties being offered for sale, the competition is fierce. Be prepared and submit your very best offer. ( You may even have to consider whether you would be willing to make up the difference between the appraisal and the selling price. Appraisers may not yet see the upward push in values.)
Believe me. This is a tough market for buyers.
If you are wanting to buy a house, you had better be prepared to make your offer the best offer your financial situation will allow. We are in an environment of multiple offers and of agent/seller demands for proof of your ability to complete the transaction. This is not a real estate market where the buyers are in charge.
If you are looking at properties and wanting to actually buy a property, there are some important documents you must have when you submit your offer. No longer does an offer with a 20% down payment put you ahead of an offer with a 3.5% down payment. While your 20% down might give you an edge, these other supporting documents are absolutely necessary.
1) A Pre Approval letter from a lender. Perhaps even a Pre Aprroval from a lender specified by the agent/seller. (The agent/seller cannot make you use this specified lender but it does seem that having their lender interview and check you out can be a condition of acceptance.)
2) Your Pre Approval letter must contain your FICO scores.
3) Proof of funds. This can be a bank statement showing that you have the needed funds for your down payment and your costs of sale. It could be a statement from your stock broker showing sufficient assets to make the down payment and costs. (This may be questioned if you are planning to sell some assets to obtain the cash necessary.)
Without the above documentation, your offer may be refused. Since it may take a bit of time to locate the property you wish to buy, keep track of the dates on these documents. Once they are 30 days or more old, they need to be updated.
With the small number of properties being offered for sale, the competition is fierce. Be prepared and submit your very best offer. ( You may even have to consider whether you would be willing to make up the difference between the appraisal and the selling price. Appraisers may not yet see the upward push in values.)
Believe me. This is a tough market for buyers.
posted by shirley harry at 8:32 AM
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