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The Top Tips To Get Your Offer Accepted

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The Top Tips To Get Your Offer Accepted In A Seller's MarketThe housing market today is very competitive, and you might be wondering how you can get your offer accepted. If the seller has multiple offers on the table, it can be a bit of a challenge. Many people assume that the best way to get an offer accepted is to offer the most money. Even though that is certainly helpful, there are several other tips you should follow to make sure your offer is the one the seller picks.

Get Pre-Approved For A Mortgage

First, you must make sure that you get pre-approved for a mortgage. Unless you are paying cash for the home, you should talk to a local loan officer to get a pre-approval letter. You don’t have to go with that company once the dust settles, but you need to get a pre-approval letter from a lender. That way, the seller will know that you have a high chance of getting approved for the loan.

Offer More Earnest Money

If you are willing to offer more earnest money, that will make the seller more comfortable. The seller is always worried that the buyer might pull out on the offer, meaning that their home will go back on the market. If you increase the amount of earnest money you put down, the seller will feel more confident that you are serious about buying the home.

Give The Seller The Option To Rent Back

If the seller accepts your offer, you will have between four and six weeks before your first mortgage payment is due. Therefore, you won’t have any payments after closing for a while. If the seller is not ready to move yet, or if the seller has not found a new home, offer the seller an opportunity to rent the home back for free. This will give the seller more time to get everything in order before they move. 

Increase The Strength Of Your Offer

In a seller’s market, you need to make your offer stand out. Otherwise, you may have a difficult time finding a house, particularly if you cannot pay cash. If you follow these tips, you can increase your chances of having your offer picked by the seller. 

 

A Non-QM Mortgage: What Does This Mean?

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A Non-QM Mortgage: What Does This Mean?If you are interested in purchasing a house, you need to review all of the offers available. The vast majority of loan officers are going to talk about something called qualifying mortgages, which is usually shortened to QM. You may be asking, what is a non-qualifying mortgage? This is usually shortened to Non-QM, and it simply means that the loan does not conform with the rules and regulations put in place by the Consumer Financial Protection Bureau, usually shortened to CFPB. What are the differences between a QM and Non-QM mortgage, and which one is right for your needs?

A Qualified Mortgage Generally Provides More Protection

In general, a qualified mortgage (QM) typically provides you with a greater degree of protection. The loan has to conform to certain standards. This means that the loan cannot last longer than 30 years, there cannot be any prepayment penalties, it cannot be a balloon loan, and it should not have any negative amortization features. At the same time, qualifying for a QM mortgage can be more difficult, as lenders have to follow all of the rules and regulations set forth by the government. This includes verifying bank statements, income, W2s, and numerous other examples of documentation.

A Non-QM Mortgage May Provide More Flexibility

You may want to take a look at Non-QM mortgages because they might offer more flexibility. These are very useful for gig workers that do not qualify for QM loans. Another reason is, you might want to lengthen the loan term to 40 years. Or, you might be interested in a loan that only requires you to pay interest, particularly if you are a real estate investor. This is also an option available to foreign nationals who would like to buy property in the United States. On the other hand, you should talk to a professional who can review the risks of a Non-QM mortgage as well.

Find The Best Loan Option For Your Needs

Ultimately, it is critical to review the benefits and drawbacks of each option before you make a decision. The right loan for one person might not necessarily be the right loan for you. If you talk to an expert, you can review all of the options available and put yourself in the best position possible to qualify for a home loan. 

 

Finding The Best Mortgage Deal: What To Do

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Finding The Best Mortgage Deal: What To DoYou have worked hard for your money, and you probably want to save as much of it as you possibly can. That means you need to find the best possible mortgage deal you can. What are a few steps you should take if you want to get the best loan terms possible?

1. Get Plenty Of Estimates

You need to get a lot of estimates from different types of lenders. Examples include private mortgage companies, commercial banks, and credit unions. If you have a real estate agent, you may want to see if they can refer you to a loan officer. Many of these institutions have forms you can fill out online. Then, they will give you a custom rate estimate. When you compare rates across institutions, you must make sure you use the same loan terms. For example, you might want to get a 30-year fixed-rate estimate from all of these institutions. 

2. Understand Closing Costs

When you get an estimate back from the lender, they will probably give you the total loan amount, the term (or length) of the loan, and the interest rate; however, you cannot overlook closing expenses. For example, some lenders will charge you a fee just for printing your loan documents. Pay attention to the closing costs and try to remove as many of them as possible.

3. Select A Lender

After reviewing the documents carefully, you should select a lender. Be sure to ask about the rate lock period, which guarantees your interest rate for a certain amount of time. You need to make sure your interest rate will not change before you get to the closing table. You should also ask about prepayment penalties, which refers to penalties you might have to pay for paying off your mortgage early. If you plan on making extra payments toward the principal, try to remove the prepayment penalty.

4. Finalize The Document

Once you are done with the negotiating process, go ahead and finalize the document. You cannot necessarily negotiate appraisal fees or government recording fees, but you can negotiate your closing expenses, interest rate, and points. Once you are done, work with your agent to get to the closing table and start the moving process. 

 

Mortgages & More, LLC
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Please feel free to contact me at katrina@mortgagesandmore.me with any thoughts, comments, or questions about my work—I’m always interested in making new professional acquaintances.

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