Everyone likes to know what the future will bring. There’s a certain comfort in predictability. Sure, an adventure of any sort can get be exciting but certain things shouldn’t be left to chance. For example, if you want to take a trip somewhere that you’ve never been, don’t you want a map/plan? At least directions telling you how to get where you want to go? Sure you do.
Consider your offer, for instance.
Say that one day an absolute perfect listing hits the market and the price is extremely attractive. The owners may be in a semi-desperate situation with the price being so low but that doesn’t matter; it’s the perfect property for your buyers and you know that there will be multiple offers. What can you do to shore up your offer?
First, the price has to be fair, right? Especially in light of the fact that other offers will soon be made. You also need to make sure your buyers have their financing lined up with a lender you trust and they have their loan preapproval letter in hand. So far so good.
What about a quick close? Surely that will help, right? Especially if you discover the sellers are in fact distressed and are selling to avoid a foreclosure. Why not offer a 10-day closing?
A quick close always gets the seller’s attention, especially when the buyer has a preapproval letter accompanying their offer. But what happens if the lender can’t meet a 10-day deadline?
When buyers apply for a mortgage to buy a property yet to be determined, they can do as much as they can on their end with pay check stubs, bank statements and credit reports provided to the lender but until a property is picked out, the lender is in a holding pattern and 10 days isn’t enough time.
The property will need to be inspected and an appraisal and preliminary title report will be ordered before the loan can even be submitted to the underwriter for approval. Even if the buyers have provided the lender with absolutely everything needed to approve the buyers, the property needs a similar evaluation.
Unless your buyers have cash in hand, give the lender time to perform. If you want to sweeten up your offer with a quick close, call your lender and see what they can do. Given advance notice, mortgage companies can not only accommodate a request to rush a loan through they can give you a date for a realistic close.