It’s that time of year for the first time in many years. Buyers are crawling out of hibernation and have their eyes out on their new nests. With inventories low, it’s taking more than putting in a good price to get the house or property they want.
When Carla Fried from Bloomberg/Businessweek tapped me for springtime homebuying strategies, this is what I had to offer … and it’s something we do all the time. Call it pre-approval on steroids.
While cash is king, if you’re in a situation where everyone is going to use financing, your offer should include your financial bona fides. “You need to assure the seller you’re going to be able to close the deal,” says Joe Parsons, owner of PFS Funding, a mortgage brokerage in Dublin, California.
PFS routinely provides a financial documentation package to accompany the offer that includes everything from confirming the mortgage has been pre-approved — a no-brainer in a competitive market — to a copy of financial statements showing the down-payment money exists. Parsons sweetens the pot by including the case file number generated by Fannie Mae’s automated desktop underwriter. “That’s just another way to show the buyer has already been run through the system and is good to go,” he says.
For more tips of what agents, brokers and buyers need to keep in mind when making an offer a house now and in the coming months, give Carla’s article, Strategies for the Spring Housing Scrum, a read.