Home Mortgage Blog
Misconceptions On How To Win An Offer
Right now, everywhere you turn there are multiple offers over list price. It is crucial the Buyer, Mortgage Lender, and Realtor® understand the area and how to conduct multiple offers to WIN. Here are a few misconceptions many people believe are true when trying to win an offer:
1. Pre-Qualification Is The Same Thing As A Pre-Approval
Confusingly, these two terms don’t mean the same thing. To get pre-qualified, you give your lender basic information about you (assets, income, debts, etc.) so they can determine what kind of loan you can qualify for and estimate how much you’d be eligible to borrow. However, you are not actually pre-approved until the lender verifies this information and is ready to give you a loan. You’ll have to complete a mortgage application after your lender evaluates your financial background and credit rating.
At Marketplace Home Mortgage, we have Marketplace Approved. This is a fully underwritten upfront pre-approval. We are committed to providing clients with a confident home buying process. The underwriting process is completed up front to eliminate surprises at the end. That means in as little as 3-5 days you’ll know exactly how much you are approved for.
2. Time Of Closing Doesn’t Matter
Closing is generally 30, 45, 60, or 90 days. Customizing the length to suit the seller’s needs can often seal the deal over a higher priced offer. A seller generally wants a fast closing. If you have all your ducks in a row, you may be able to pull off 30 days. Find out what they need, and then give it to them.
At Marketplace Home Mortgage, we have closed loans in under 10 days. Once we have made our commitment to lend with a buyer, we GUARANTEE we will close the loan ON TIME. We back that promise with an On-Time Closing Guarantee*. If we are unable to close your purchase on or before your scheduled closing date, we will pay your first mortgage payment up to $1,500 P&I and the seller of the property will also be paid $5,000.
3. Highest Dollar Is ALWAYS Best
Many sellers are looking for the BEST offer, not just the HIGHEST offer. Just because someone is offering the most money doesn’t mean it is always the best option for the seller. If it is just a pre-qualification, or from a lender that seems skeptical, or contains a lot of contingencies – they may not take it.
At Marketplace Home Mortgage, our buyers have won homes despite being up against higher offers. The seller chose to go with our client because they were Marketplace Approved and they knew it would be an easy transaction, with a guarantee to close on time.
4. Offer As Much As You Are Qualified For
Just because you get approved for a home loan up to $500,000 doesn’t mean you need to offer $500,000 when the house is on the market for $475,000. Offer what you and your real estate agent thinks it is worth then see what happens. That way, you still have some money to negotiate with if you are in the multiple offer situation.
5. The Seller Always Pays Closing Costs
Many people have probably heard from family or friends that the seller of the home they bought covered their closing costs. While this can be true in many cases, in a multiple offer situation it may not be the case. If you have the money to pay your own closing costs, make sure your lender and agent are aware of this when making the offer to the seller.
If you are looking to buy a home, don’t get caught up with these misconceptions. Meet with a Loan Officer from Marketplace Home Mortgage. By doing so, you will have a local expert helping you through multiple offer situations with the best pre-approval in the industry backed by an On-Time Closing Guarantee!