There’s no doubt that Colorado Springs is a great place to live. This being said, it can be a challenge finding a home, especially when the market is out of your hands, and as the market continues to implode in Colorado. How do you make your offer stand out in a seller’s market? As a local mortgage broker, we’ve seen quite a few successful strategies that can give you the upper hand to secure that perfect property. Here are five tips to give yourself a better chance of getting your offer accepted.
1. Start Early
While the process of making an offer and closing on the house can be intimidating, sometimes the earlier you start planning, the higher the chance of you getting your offer accepted. If you’re thinking about buying a home, we recommend that you start the process about 1 year out of your purchase date. While this seems like a long time, it can actually give you better options and better rates when it comes to securing your mortgage. Then, when the time comes to purchase, you already know what you can afford, and potentially be pre-qualified for a home loan. This is a huge bonus for sellers, as they do not have to wait for a mortgage lender’s approval.
2. Use a Local Lender that is Accessible
This tip has multiple benefits. Having a lender that is local to the area is not only beneficial to you as a buyer, but they are also a huge plus for a seller and a seller’s agent. First and foremost, sellers and seller’s agents prefer someone they can reach out to with questions and updates. If you are working with a national company, having to call into an 800 number or submit an automated request, this extends the process. If the seller’s party knows that you are working with a reliable, local company, this can speed up the process and increase your chances of getting your home offer accepted.
Local lenders also know the home buying landscape. They are already familiar with what you need to do to secure a home in your area. Local lenders like The Reichert Mortgage Team also have knowledge and relationships with involved parties, like realtors, banks, home inspectors, home builders, etc. This can be incredibly helpful for buyers to have someone on their side during the home purchasing process.
3. Build Your Offer to Be Competitive
This is definitely a topic of conversation for your mortgage lender. Talk about what kind of loan is best, not only for you but what is more attractive in a seller’s market. Generally, a conventional loan is more attractive than an FHA loan. Other things you might consider: increasing your deposit, consider paying closing costs, or waiving inspection requirements. You can also decide to ask for seller concessions. Talk with your mortgage company about what would be best.
4. Communication, Communication, Communication
At the end of the day, closing on a house is about professional relationships. If you want your offer to stand out, be sure to communicate and to be upfront with any wrinkles. Provide all the necessary documentation in the most timely manner, and make sure that everyone is on the same page. Also, speak with your lender and agent on any changes to income, assets, employment, or credit. This type of transparency will speed up the process and increase your chances of acceptance.
5. Pre-qualification vs. Pre-Approval vs. Full-Underwrite
Ultimately, the biggest way to make your offer stand out is to have gone through all the stages of pre-qualification. You want to not only be pre-qualified and pre-approved, but you want to have an underwriting approval as well. Here’s the breakdown of these three things:
- Prequalification = phone discussion (not worth the prequalification letter paper it’s printed on)
- Pre-approval = documents analyzed by the loan officer (valuable if from an experienced lender)
- Underwritten = Underwriter has analyzed the documents (Almost equivalent to a cash offer)
Having these things reassures the seller and seller’s agents that you have a lender backing you up, a mortgage ready to go, and your loan application, credit report, income, and assets are approved for buying a home. Talk with your local lender about getting a full underwrite as you prepare to submit your offer!
Mortgage Broker Colorado Springs | The Reichert Mortgage Team
Call us at The Reichert Mortgage Team! We are experienced, professional, and LOCAL. We have been working with homeowners to provide personalized mortgage solutions for years in this community, and we know the best successful strategies when it comes to submitting a home offer. Contact us today to speak with one of our qualified mortgage lending experts!
The Reichert Mortgage Team
Phone Number: (719) 205-0413
Address: 7635 Mclaughlin Rd, Falcon, CO 80831