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Mortgage Finance Strategy
16Apr

How to Compete with Cash Offers?

Bob Rowe |16 Apr, 2018 | Strategy, Conventional | Return|

Compete with Cash Offers

In the current "sellers" purchase market, buyers out-number sellers by a significant margin leading to competitive bidding on homes.  Frustrated buyers who need to finance their purchase often asked "how can I compete against a cash offer?"  

As a "financed buyer" in a sellers market, you need to take some additional steps to make your offer stand out against the others.  Most buyers are walking around with a "pre-qualification" letter which are generally not a fully underwritten and vetted approval.

Question: How can a financed buyers offer carry the same weight as a cash buyer?

"You have to out-bid or out smart cash buyers! Having a strategy early in the process is critical to success.

Wise Real Estate Agent

Answer:   If your loan is fully approved when making the offer, you can make a "cash-like" offer and remove the financing contingency with the offer.    The financing contingency is the main difference between cash vs. financed offer.   Remove that from consideration and you are on-par with a cash offer.  

What is critical is that you need a lender who can back you and fully approve a loan prior to the offer!   At Home Point Financial, we have a pre-approval system designed exactly for this purpose.   We will approve you ahead of time to give you a competitive advantage in you home purchasing process.

We have had a lot of success with this very approach and have many satisfied clients successfully close on homes where they were competing against cash offers.

Call me and I will get your loan pre-approved so you have the best chance of success!

 

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