Make a Powerful Offer with a Commitment in Hand
Below, learn more about 2 powerful financial tips you can employ when buying your next home. If you have additional questions about the home buying process, contact us - your local experts at Brattleboro Area Realty
First - offer sellers cash for their home. No, no, not your cash - the lender’s cash. This gets the sellers’ attention. Before looking at homes, ask the real estate agent to set a “pre-qualification” interview with a mortgage lender.
The lender will ask about your employment, income, and debts, then estimate the maximum mortgage for which you qualify. Subject to verification, of course, the lender can then offer a “conditional commitment” for a specific loan amount.
With this commitment in hand, you have greater purchasing power with property owners. Sellers are certain to prefer a solid pre-qualified buyer to a cold prospect. To them, your purchase offer can carry the same weight as a cash offer, improving your bargaining position.
Second - Earnest money. When making a purchase offer, most buyers offer the smallest acceptable deposit. Property owners may hesitate to accept such an offer when secured with a mere $300 or $500 deposit. To let buyers know you’re committed to completing the purchase, offer $2,500 or $5,000, or even more as earnest money.
Insure a sale for the property owners by presenting yourself as a “cash” buyer accompanied by a substantial earnest money deposit. Increased buying power will be your reward.