How to Get Your Offer Accepted: The Ultimate Guide to Competing with Cash Offers
In this tough housing market, it can be difficult to get your offer accepted even if you are offering more money than the cash buyer. This is because so many people are now competing with cash buyers. However, there are still ways that you can beat a cash offer and become an easy home buyer!
In this guide, we will discuss how to get a seller to accept your offer and how to compete with cash buyers. We will also provide tips on how to get pre-qualified or pre-approved for a mortgage so that you can make the best possible offer on the home of your dreams!
Understand the Seller's Motivations and Fears
In order to win a bidding war in this real estate market, it is important to understand what the seller is looking for in an offer. Does the seller need a quick sale? Are they worried about getting a cash offer vs mortgage? Having this information can help you make an offer that is more appealing to the seller.
For example, if the seller needs a quick sale, you could offer a shorter escrow period. If the seller is worried about low-balling, you could make a higher initial offer. One of the advantages of cash offer on house is the feeling of security it provides the seller, but there are alternatives to providing that security.
Veritas Funding's in-house processing and underwriting teams ensure a fast loan turnaround time and quick closing. This can be a big selling point when you are competing with cash buyers! In addition, by getting a pre-qualification for your loan you could cut down your closing time to a week or less!
How to Beat a Cash Offer on a House: Getting Pre-Qualified or Pre-Approved
One of the best ways to compete with cash buyers is to get pre-qualified or pre-approved for a mortgage. This shows the seller that you are a serious buyer and that you have the financing in place to buy their home. How often do cash offers fall through has a lot to do with how compelling of an offer you can provide. A pre-qualification and pre-approval are different however and one is stronger than the other
What is a Loan Pre-Qualification?
A loan pre-qualification is when a lender gives you an estimate of how much money you could borrow for a home. This estimate is based on information that you provide to the lender about your financial situation, employment history, and credit score.
Getting a loan pre-qualification is a good first step if you are beginning the home-buying process or learning how to get an offer accepted on a house. It can give you an idea of how much money you could borrow and can help you narrow down your home search to homes that are within your budget.
What is a Loan Pre-Approval?
A loan pre-approval is when a lender gives you a letter stating that you have been approved for a loan up to a certain amount. This letter is based on a more thorough analysis of your financial situation, employment history, and credit score.
The Veritas Funding Purchase Booster Program leverages a pre-approval to compete directly with cash offers. When you use the Veritas Funding Purchase Booster Program to get pre-approved, one of our lenders can give you a specific loan amount and actual interest rate.
And since a member of our Underwriting Team will actually verify things like your tax, employment, and credit history before giving approval, you (and sellers!) can feel confident knowing that this is the real deal.
A loan pre-approval is stronger than a loan pre-qualification because it shows that you have already been approved for financing. This can make you a more competitive buyer when you are bidding on a home.
At Veritas Funding, we can help you get pre-qualified or pre-approved for a loan quickly and easily. We understand that time is of the essence when you are bidding on a home, so we make sure to get you through the process as quickly as possible and help you make a good home offer!
Leverage down payment assistance programs
Another way to compete with cash buyers is to leverage down payment assistance programs. These programs can help you come up with the cash for a down payment, which can make your offer more attractive to the seller.
There are a variety of down payment assistance programs available, so be sure to research which ones you may be eligible for. You can also talk to your lender about down payment assistance programs that they know of.
Here are some of the down payment assistance programs offered through Veritas Funding
- Utah Housing Corporation Loan Programs
- Zero Down Mortgages
- Chenoa Fund Down Payment Assistance
- IHFA Home Loans
- Utah First-Time Homebuyer Law Enforcement Grant
- And many more!
Make a strong initial offer
If you keep getting outbid on houses in 2022, you need to better understand how to make a good home offer. Half of that battle is a strong initial offer. This means that you could start with your highest possible offer and then negotiate from there.
If you start with a low offer, the seller may not be willing to negotiate with you at all. However, if you make a strong initial offer, the seller may be more likely to negotiate with you and accept your offer.
Claim Victory No Matter the Housing Market
There are our tips for how to make the best offer on a house. Navigating the housing market can be difficult, but by getting pre-qualified or pre-approved for a loan, or leveraging down payment assistance programs, you can make a strong offer that the seller will not be able to refuse!
Don't let the housing market get you down. With Veritas Funding, you can claim victory no matter what the market looks like. Contact us today to learn more about how we can help you win the bidding war and get your offer accepted!
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