Secrets to Winning the Offer War (Part 2 of 4)

Financing

Here is Part Two of the four part series on winning the offer war. If you missed Part One, here’s the link to the piece about “Price”. Today we’ll be looking at the second factor:

TERMS:

  • Prominent among the details is the answer to, “How will you be paying?”  All cash with no need to seek approval for a loan is a strong offer, but some Sellers will accept financing contingencies when attached to a higher price. 
  • If you include a loan, always, always, always use a local lender.  Why? Because local lenders  KNOW THIS MARKET.  Most of the delays, disruption and loan failure come through an out of area lender’s unfamiliarity with local market conditions and regulations.
  • Sellers and listing agents will be on the lookout for ways your loan might go wrong.  Make your down payment as high a percentage of the asking price as possible—lenders are happiest making loans where you have at least 20% of your own money in the deal.
  • Date your close of escrow as close to the offer date as possible, which brings us to the third factor, Contingencies, which I will cover in Part Three posting July 22nd.