Things to Consider When Making an Offer on Your Home

It’s an exciting time! You have your eye on the perfect house and you’re ready to make an offer. If you are a savvy home shopper, you have gotten your finances in order, have your mortgage pre-approval letter and even contacted a real estate professional to assist you with the home buying process. Now, the only thing that’s left is for you to come up with the best offer that is sure to be accepted.

Making the right offer on your home will increase the chances of closing the deal quickly. But, you have to consider more things than just the seller’s asking price. That’s why we have put together some tips to help you understand what to expect when making your offer.

Consider How Much Your Offer Should Be

There are so many moving parts when it comes to making an offer on a house. It’s more than just telling the seller how much you’re willing to pay. That’s why it’s important that you choose the right real estate professional. They can use their expertise and help you come up with the perfect offer. When you work with a real estate professional, they will advise you on how much to offer for the property.

The right real estate professional will also provide insight into the sale history of the property as well as the home’s estimated property value. You can compare this to other houses on the market in your area. Other things to include when considering your offer are maintenance and renovation costs for the house. You can use all of these factors in order to come up with the best offer possible.

When considering your offer, you need to take into account the list price of the house. This price provides insight into the seller’s expectations. Other factors to consider when deciding on how much to offer, include the home’s property value, maintenance fees, and possible renovation costs.

Make An Offer The Seller Can’t Refuse

Believe it or not, you’re most likely not the only one interested in that dream home. There’s a chance you are competing with other buyers. The last thing you want is to get into a bidding war. In a situation like this, you could lose out on your home. Instead, you want to stand out amongst the others. This will increase the likelihood that the seller chooses you.

A good REALTOR or agent will know if there are any other potential buyers for the same property and can guide you to make an offer that will not get rejected. Your agent will also provide more information about the seller which can help you create an offer matching the seller’s needs.

Having a pre-approval letter in hand can increase the likelihood of your offer getting accepted by the seller. This important step starts with your mortgage lender and shows that you are serious about buying the property. Although the pre-approval letter is not a requirement for making your offer, however, it will help you stand out amongst other buyers. To make it easier for buyers, Holly Walther and team offers a fully underwritten pre-approval letter.

You’ve Made an Offer, Now What?

You’ve submitted the forms, provided proof of financial stability and how much you are able to pay and now you wait.

Here are different scenarios you might find yourself in once the offer is accepted, rejected, or countered:

Handling a Rejected Offer

No future homeowner wants to hear that their offer has been rejected, but it is a possibility.  However, you should not be discouraged, because you can usually put in a counteroffer.

Dealing with a Counter Offer

A counteroffer does not necessarily mean your offer was rejected or accepted. In some cases, the seller will submit a counter offer which can be higher or include additional closing costs. The best thing to do is discuss it with your real estate agent and then decide if you should accept the offer or counter it with your own.

When They Accept your Offer

Your offer has been accepted and this is great news! Now you need to secure proper financing. Talk to your mortgage specialist regarding next steps. The Holly Walther Team is here to help you! We would love to walk alongside you during your journey to home ownership. Contact us today for your hassle free consultation.

Checklist for Your Mortgage Loan Application

Everything you may be required to provide to process your loan

Copy of Your Driver’s License
30 Days Most Recent Paystubs
2 Years W2’s and 2 Years of Full Tax Returns (if self-employed, 1099 or contract)
Contact Name & Phone Number for Human Resources to Verify Employment
Most Recent 2 Months Bank Statements (all pages on all accounts)
Most Recent Statements Covering a 60 Day History for Your 401K, IRA, Retirement etc.
Home Owner’s Insurance Contact Information

If you are Self– Employed and receive a K1, we will need 2 years of Business Returns in addition to the above.

If you are applying for a VA Loan, please include a copy of your DD214 and Certificate of Eligibility.

 

Things to Avoid While Applying for a Mortgage

We understand life happens, but in an ideal situation it is helpful to avoid the following when applying for a mortgage and during the mortgage process.  If any of these occur, please let us know as soon as possible.

  • Name changes
  • Changing or quitting your job
  • Non-payroll deposits greater than 25% of your monthly income
  • Not filing tax returns
  • Making large purchases (buying a car or boat)
  • Multiple addresses (Driver’s License, W-2, Pay Stub, Tax Return)
  • Opening new credit accounts
  • Last minute requests for Power of Attorney
  • Withdrawing money from a credit account for down payment

Become a Certified Homebuyer today

Looking to purchase a home?  Want to make an offer that’s almost as strong as a cash offer?  Look no further than our CERTIFIED HOMEBUYER PROGRAM, the strongest approval in the industry. The significant difference between this certified approval and a pre-approval is the borrower’s income, assets, and credit are verified and approved by an underwriter.

Validated items include:

  • Credit report approved
  • Sufficient income documented to qualify
  • All funds for closing verified
  • No other known credit issues exist that could prevent on-time closing.

What does all that mean?  It means your loan is underwritten and approved with the specific property “To Be Determined.”  The seller will know you are fully approved as a buyer allowing you to stand out among those that are just pre-approved. All that remains, following your Certified Homebuyer approval, are property specific conditions- such as inspection, appraisal, title, insurance, etc.

Once you find the home you want to purchase, you’re on the fast track to the closing table, often being able to close in as few as eight days. Let’s get you certified today!

More Options for Jumbo Loans

The first attribute that makes a loan a Jumbo Loan is the loan amount.  Loan amounts above $453,100 fall into the Jumbo category.  These loans are not backed by Fannie Mae or Freddie Mac, but rather other financial investors.  However, like conventional loans (Fannie/Freddie), the better your credit score and the greater the down payment directly impacts the interest rate and loan terms.  Jumbo rates tend to be a little higher than conventional rates as the risks are larger. Comparatively speaking, Jumbo rates are still at historic lows.

Jumbo Loans have recently expanded their criteria allowing more borrowers to purchase their dream homes.  You can now finance up to 95% LTV (loan to value) with no MI (mortgage insurance)!  For those that are self-employed or have non-traditional income, you can now qualify for a mortgage using bank statements, tax returns or assets only.  Some of our Jumbo programs are also forgiving of past adverse credit such as foreclosures and bankruptcy sooner than conventional lenders.

We know everyone’s circumstances are different.  Please contact us today to discuss your needs.  We will work hard to help you finance your dream home!

To Renovate or Not

Have you been dreaming of a new kitchen?  Updated bathrooms? A pool? New flooring and more? You don’t necessarily have to move to find these things when you use a Renovation Loan.  You can refinance or purchase a home that needs renovation under one of our Renovation Loan programs. The possibilities are truly endless.

Whether you are looking to modernize, remodel, make your home more energy efficient, put in an out building or more, the Renovation Loan can help. You can let your imagination run wild.  Of course the “bones” of the house can be updated using this type of loan including new roofing, gutters, downspouts, plumbing and more.

Another great feature of the Renovation Loan is that it can be used on primary residences, second homes and even investment properties.  With a low minimum credit score requirement of 620, many will be eligible to take advantage of making their home a bit more customized and updated.

Contact us today to learn more and to discuss your options.

100% Financing with Down Payment Assistance is back

Has saving for a down payment been one of the biggest obstacles in buying a home?  Do you want to hold on to your savings?  If you answered yes to either of those questions, our Down Payment Assistance program may be the perfect fit.

Down Payment Assistance is essentially a loan for the down payment that is repayable as a 10 year second mortgage on the property.  For example, on a $150,000 home, the down payment for an FHA loan would be 3.5% or $5,250.00. With down payment assistance, you would not need to come up with those funds, but rather, you would pay it down over a 10 year period as part of your monthly housing expenses.

In order to qualify, there are income restrictions, debt-to-income limits, credit score requirements and other underwriting guidelines.  Want to learn more about reaching the American dream of home ownership? Contact us today or fill out an online application on our website and we will assess your home financing options to see if Down Payment Assistance is a good fit based on your specific circumstances.

Note: Success Mortgage Partners is not acting on behalf of or at the direction of HUD/FHA or the federal government.

Perception isn’t always reality

We live in a world where perception is reality and we all want it now.

Take five minutes to watch TV and you will see where companies are convincing consumers that a mortgage is as simple as one, two, three in five minutes on an app on their phone. While that may provide an instant decision, nine times out of 10, it’s not the real deal.

Consumers perceive this to be a benefit initially, but in the weeks to come they find themselves in situations where they no longer qualify, money is invested and or lost, or they are settling for a loan structure that is far different from what their initial decisions were made. This is a huge disservice to the consumer and our industry.

At the Holly Walther Team, we offer personalized home loan recommendations, great rates and superior communication and customer service.  Contact us today and welcome to the family.

Be Careful, Dr. Google!

I believe technology to be both a blessing and a curse.  While it provides the consumer access to information, it can also provide them the wrong information.  (Think what happens when you Google your symptoms, you become Dr. Google and think your headache is a brain tumor).

Not all situations are the same. 

A mortgage is the biggest financial decision most will make in a lifetime.  Clients need to ensure they are working with someone who appreciates this and is willing to take the time to understand their goals.  In society we are so programmed to focus on interest rate; while the rate is important, they need to consider so much more.

Payment– is it affordable and ideal for their situation.

Cash– are they leaving themselves ample reserve to protect themselves and family, as well for future improvements or repairs.

Tax– are they maximizing their tax savings, offsetting some of the payment costs?

Term– do they understand the term they are choosing and the long-term benefits? Is the term they are selecting preparing them to meet their retirement and goals towards financial freedom?

Investment– have all the above been reviewed and considered to maximize their long-term return?

We are prepared to discuss and help you consider the above issues and more when choosing the best mortgage product. Contact Holly and team at 404-436-0013 or hollyw@hollywaltherteam.com.

Hop into the driver’s seat with our TBD loan approval

We all know it’s currently a seller’s market, but you can stand out from the other buyers by taking advantage of our TBD loan approval, putting you in the driver’s seat!

What does that mean?  It means your loan is underwritten and approved with the specific property “To Be Determined” or TBD.  The seller will know you are fully approved as a buyer allowing you to stand out among those that are just pre-approved.

Once you find the home you want to purchase, you’re on the fast track to the closing table.

Click here to learn more from Holly about this fantastic loan approval program.