In certain markets, its is very obvious there is limited inventory causing a very competitive market for buyers. When asked how we can help, here is our advise:
1. Get Pre Approved.
In these markets we emphasize the importance of a fully underwritten pre approval. A pre approval lets everyone know your serious about the offer. In addition, you know your numbers, you create a ceiling when numbers change in negations and you can make faster decisions.
2. Understand Your Pre Approval.
You need to understand if you got pre approved based on what you requested or if you have been pre approved for your max limit or max comfort level based on payment. Knowing what you would like to be pre approved for and what your limit and comfort is can be very important in negotiations. You also want to confirm you actually got pre approved, not pre-qualified. We can pre qualify you in under one minute. Its accurate if you have no debt and simple income but it doesn't take into consideration credit, your full capacity which is needed in a competitive market.
3. Connect Us With Your Realtor.
Surrounding yourself with a great team makes a huge difference. When everyone understands what we are working with it adds transparency and set realistic expectations. There are also creative ways in handling financing conditions and other contingencies to put your offer ahead of your competitors.
4. Be Flexible.
If your flexible in the size of your deposit, the closing date, purchasing before selling, your contingencies and other aspects in the buying process you may be better positioned than your competition.
5. Talk To Your Mortgage Broker (preferably us)
When you talk to a good mortgage broker, you not only get pre qualified for your potential purchase but you understand the process better. If you already own a home, do you know how much equity is available for your down payment, is there a penalty to break your mortgage, is the existing mortgage portable, assumable. Can you carry both properties if the existing home doesn't sell prior to the purchase or how do you handle that scenario. Does the new lender offer bridge financing, are you aware of the costs of bridge financing. Being informed makes your a better buyer and one that is more likely to negate efficiently and effectively.
For more information on getting a solid, fully underwritten pre approval, let us know!