Frustrated CA Home Buyer

Frustrated California Home Buyer

According to California Association of Realtors Home prices in Santa Clara County  have increased about 24.3% compared to the same period last year.  Part of the reason for this jump is the lack of inventory which makes it very difficult for anyone with a Loan Contingency to compete with Cash buyers.

But here are the Top 5 reasons to make sure your offer would have a fighting chance of being accepted:

1) Pre-Approval for Mortgage:  Make sure you are including a Pre-Approval with your offer as opposed to a Pre-Qual.  Pre-Approval is identical to a Complete Mortgage Loan application where the lender completes the verification for your Employment, Bank Accounts and all your Assets.   

2) Proof of Funds:  Make sure you are providing Proof of Funds with your offer.  If your down payment for the loan is 20% of the purchase price, you should supply Bank Statements showing that you have the 20% ready to go.

3) Close of Escrow: Keep in mind that you are competing with Cash offers  that are ready to close in 10 days or sooner and if your offers is set to close 30-45 days after your offer is accepted then you are killing your chances of getting a counter from the seller.

4) Contingencies:   Most cash buyers that you are competing with are writing offers with very little contingencies.  Since your offer is already contingent on a Loan, requiring additional contingencies make it that much harder for the seller to choose your offer.

5) Flexible Terms:   Be prepared to offer the sellers flexibility on Possession or any other sales criteria that might be important to the seller. If the sellers need additional days to vacate the property, you could offer them those options with a rent-back agreement that shows you are willing to cooperate with them if they select your offer.

Does your Real Estate purchase offers come close to meeting these recommendations!?  Let us know what you think about these recommendations.

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