Homes With Multiple Purchase Offers
Home buyers with prior credit issues or low credit scores can qualify for a mortgage loan as long as they have a minimum credit score of 580 FICO credit scores. To qualify for a FHA Loan with a minimum of 3.5% down payment, the minimum credit score required is 580 FICO credit scores. Just meeting the minimum credit scores is not the only credit and income requirement. You cannot have any late payments in the past 12 months, cannot have any judgments or tax liens unless you have a payment agreement, cannot be delinquent on government loans such as student loans and child support and/or alimony payments, and have re-established credit if you had prior bad credit. As long as you have income, you can qualify for a home loan. It is not if you qualify for a home loan, but when you will qualify for a home loan. Many borrowers who I represent with prior bad credit and who cannot currently qualify for a home loan, I help them improve their credit so they get qualified. It may take several weeks or several months. After working for months in improving their credit, potential home buyers can now go out and purchase a home. Unfortunately, many find disappointment due to lack of inventory of homes to their likings. Then they may encounter a home that they fall in love with, however, they have multiple offers. What do you do now?
Get Friendly With Sellers And/Or Seller’s Realtor
If you have a chance to meet the seller of the home, introduce yourself and break the ice by asking them questions about the neighborhood and the home itself. Express sincere interest in the home and talk about personal issues as well as about the home. Home sellers will not always go with the highest purchase offer. Home sellers understand that on multiple purchase offers, they can only go so high because if the home does not appraise out, the chances are that they need to reduce the price. There are many cases where home sellers go with the home buyer they feel most comfortable with even though they might have a weaker credit profile and the offer may be lower than other purchase offers. If you are an animal lover and see that the seller has a dog, you can talk about dogs. Animal lovers can talk about their animals for hours. If the home seller has kids and you also are a parent of children, then you can talk about the school system, park district, or other children related topics.
Seller’s Real Estate Agent
Seller’s realtors have a big influence on which buyer’s offers to recommend to the seller. Be friendly with the seller’s real estate agent and show them that you are a solid buyer and convince them that you will close on the home. You can offer the seller’s real estate agent that they are welcome to contact your mortgage loan originator and give them the contact information of your loan officer. You need to stand out on homes with multiple purchase offers where you can convince the seller’s real estate agent to pick you to recommend to the home seller.
Making A Reasonable Home Purchase Offer
Once you chose the home you want to purchase, you need to make a reasonable purchase offer. On homes with multiple purchase offers, many home buyers tend to bid higher than the actual listing price of the home. By doing this, it can create future problems if the home does not appraise out and home sellers realize that. Making an offer higher than the listing price will not guarantee that you will have the winning bid on homes with multiple purchase offers. If you really want the winning offer on homes with multiple purchase offers, I would offer the full asking price. Many potential home buyers on multiple purchase offer properties may do the same, however, home sellers want to go with the most solid home buyer with little or no contingencies on the home purchase contract . Large earnest money shows strength that you are a strong home buyer. A solid pre-approval letter with a large down payment shows strength. Little to no mortgage contingencies will also show strength. For example, many home buyers with excellent credit and income profile may offer a no mortgage loan contingency which will definitely show strength that the home buyer will defintiely get a mortgage loan.