In a seller’s market, cash offers on homes are often more common than financed ones. However, this doesn’t mean that a buyer who needs financing can’t beat out a cash buyer. There are some things you can do to ensure that your offer is competitive and gets the attention of home sellers.
- Identify what matters most to the seller when you make an offer.
Many home sellers prefer a cash offer because it’s more likely to close, and the process is simpler than a financed one with lenders involved. But cash buyers won’t reap certain tax benefits, and they may miss out on a potential home mortgage interest deduction depending on their situation.
- Get pre-approved before making a cash offer on your home.
Before you make a cash offer on your home, it’s important to get a mortgage preapproval from a lender. You’ll need a minimum credit score, and you should also have your income verified. It can take up to a few weeks for a lender to approve your loan application, so be sure to get this step done early in the process. More info https://www.acashhomebuyer.com/sell-my-house-fast-texas/
- Be ready for inspections, appraisals and other contingencies that might affect your sale.
Depending on the type of mortgage you’re using, your home could have a lot of inspection or appraisal requirements that will impact your closing date or even the sale. It’s important to have the money in hand to pay for these expenses, so it’s a good idea to prepare for those ahead of time.
- Get the home professionally inspected and appraised before you make your offer.
Getting the home inspected and having a professional appraisal before you make an offer can help you strengthen your bid and increase your chances of winning the property. It can also give you a better understanding of what repairs are needed, which can make you a more appealing prospect to sellers who might be worried about selling their home in need of extensive renovations.
Avoid a home sale contingency that will make you lose your earnest moneydeposit if your financing falls through.
A financing contingency is a common issue with buyers who are using FHA or VA loans to buy a house. These loans are more stringent than conventional mortgages, and they can sometimes be difficult to qualify for or find properties that meet program requirements. In addition, some condominium buildings have CC&R’s that can limit FHA-approved buyers.