Here are a few different ways that you can stay competitive as a homebuyer in this fierce market:
1. Be prepared. If you’re purchasing with a loan, make sure you’ve met with a loan officer and provided them with your tax returns, bank statements, and pay stubs. The goal is to obtain a pre-approval letter that verifies your assets, income, and down payment. If you’re paying with cash, you’ll need a proof of funds letter from your bank. If you do use a bank statement to verify your funds, make sure you black out all your account numbers and personal information.
2. Be aggressive. You may have to make an offer over asking price. If you intend to live in this home and it’s the home of your dreams, offering above asking price might only mean a few extra dollars on your monthly payment. On a 30-year loan with a 4.5% interest rate, the monthly payment is around $1,031 for a $200,000 home. If the purchase price is bumped up to $210,000, the monthly payment just goes up to $1,064. That’s just a $33 difference to potentially own the home of your dreams.
3. Be creative. Sometimes offering above asking price either isn’t an option or isn’t enough. To make your offer really stand out, consider structuring it with a short inspection period. Most sellers will appreciate you getting these done as quickly as possible so they can concentrate on closing and moving. Talk with your lender about shortening your appraisal and financing contingencies to get the extra edge. You could also pay for the seller’s closing fees or write a heartfelt letter to the sellers letting them know why you like the home and why you’d love to have it.
If you’re a homebuyer and you want to get more expert advice or need our help making your next purchase or sale, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.