Frustrated CA Home Buyer

Frustrated California Home Buyer

Home prices in  Santa Clara County have increased by 24.3% in 2013 compared to last year according to  California Association of Realtors.  Part of the reason for this increase in Real Estate prices is lack of sufficient inventory which makes it very difficult for anyone who needs a loan to compete with Cash Real Estate Offers.    But here are the Top 5 reasons to make sure your offer would have a fighting chance of being accepted:

1) Proof of Funds:  Include 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% or more available for you to close this purchase.

2) Pre-Approval for Mortgage
:  Avoid using Pre-Qual letters which are not worth the paper they are written on.  Make sure you are including a Pre-Approval with your offer as opposed.   With Pre-Approval the seller is confidant that you have filled out a Complete Mortgage Loan application where the lender has performed verification for your Employment, Bank Accounts and all your Assets.   

3) Aggressive Lender:  Cash buyers are closing escrow in 7-10 days.   You should also request reasonable amount based on your lenders speed to complete the loan underwriting.   With the lowest interest rate in years, most lender have a massive volume of refinance loans, but underwriting typically gives priority to Purchase loans.   Check with your lender to see if they can close in 21 days or sooner.  

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) Be Flexible on Your Terms:   Be prepared to offer the sellers flexibility on Possession or other criteria that might be important to the seller.  If the sellers need additional days to vacate the property, you should consider the options to rent-back the property to them after the close of escrow.  This shows 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 suggestions!?  Let us know what you think about these recommendations.

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