Beef Up Your Offer
Jun 20, 2013 02:31PM
By Bailey Hemphill
With home prices rising, potential buyers need to make their offer stand out. To help beef up your offer, here are five questions you should ask:
- Do I have a strong pre-approval letter? Get pre-approved for a loan from a trusted lender. This letter is evidence of how much you can borrow and shows that a lender has done a credit check and verified income and assets, so your ultimate mortgage approval can go more smoothly.
- Do I know what the seller wants? Working with a reputable real estate agent, you should determine the seller’s motivations. In some cases, sellers want to close quickly. Other times, they may be waiting to relocate and a speedy closing is less important.
- Can I avoid contingencies? Sellers who do want to close quickly may get antsy about contingent offers—such as when the buyer needs to sell a current residence. Try to avoid contingencies if possible.
- Is my offer price strong? A good real estate agent should be able to advise you on comparable sales and listings in the neighborhood you want. This information can help you strengthen your offer.
- Do I have the cash to close? It's helpful to have your cash amassed in a liquid account to cover the down payment, closing costs, and other expenses.
Mike Becker is a mortgage banking regional sales manager for Bank of the West – Member FDIC, Equal Housing Lender. Becker lives and works in Omaha and can be reached at [email protected]