When buying a home, it can be a scary thought to think about competing against those who are making a cash offer on a house. Cash buyers can perform and close quickly and provide sellers with a sense of comfort. Does that mean to rule yourself out of the fight? Absolutely not.
If you can’t make a cash offer on a house? That is OKAY! There are a lot of people who cannot make a cash offer. Ask yourself these questions:
- Do you have a 20% down payment?
- Are you well employed?
- Do you have cash reserves in addition to your down payment?
- Do you have very little debt?
- Do you have good credit?
If you answered yes to most or all of these questions, your offer should be just as good as the cash buyer.
Here is how to stay competitive:
- Pre-approval. This will make you so much more competitive in the eyes of the buyer because pre-approval is proof to the buyer that you will be approved for the loan and can make the purchase. In addition to the pre-approval letter from your lender, be open to allowing your agent or lender to provide the financial information with your offer. If you bring a statement of how much you make, how much you have in the bank, credit reports, etc. then they will be able to see for themselves that you are the same as the cash buyer, financially.
- Shorten the loan and appraisal contingencies. Ask your lender how quickly they can send an appraiser to the property and how long the loan would take to turn around. First Ohio Home Finance prides our company on how quickly we are able to turn loans around for our customers.
- Inspect quickly. Along with the two other hurdles listed above, get the inspector in and out quickly. Shelling out a few hundred dollars and getting the inspection done within days of having the offer accepted shows the seller that you mean business. It also gives them comfort that they will get over the biggest hurdle quickly.
- Show the seller your true personality. This trend is on the new end of home buying but it has proven to be effective. Write the seller a letter detailing your involvement in the community that you are looking to buy in, tell them about the family/couple that will be living in the house with you, anything for them to get to know you better. Does it work every time? no, but it has worked sometimes! It will not hurt to get a little personal with your real estate offer letter. You can ask your agent to write a cover letter and an introduction. Let the seller know who you are, why you like the home and your intentions!
First Ohio Home Finance wants to help you own the home of your dreams, contact us today to get started.