The 2022 housing market has been a seller’s market and as a buyer, it can be tough to get your offer accepted. Imagine walking into your dream home and having all your boxes checked! However, after making an offer, you find that you lost it to someone who offered cash or way above asking. Unfortunately, there are many homebuyers who have experienced this setback, but there are ways to make your offer stand above the rest, even those cash offers.
When a seller is entertaining offers, they are looking for certainty. They want to choose the offer that is going to close. This is the reason so many sellers are accepting cash offers over those being financed. The number one question you should always ask is, “Why should they accept my offer?”
Before you start the search for your home, you will need to have a rock-solid financing plan in place. You may have heard stories where the seller accepts a cash offer, which is lower than any other offers on the table. Cash offers create a sense of ‘certainty’ for the seller, which is why they are accepted more frequently.
One way we set you up for success is through our Certified Home Buyer Program. This program turns our buyer’s offer into a cash-like offer, giving the seller the certainty they require. We provide you with more negotiation power in your home search, as well as getting you a better deal for the home that you truly want.
How it works
There is a difference between a prequalification and a preapproval. The Certified Home Buyer Program is a complete home approval program, which is guaranteed by us as your lender, to the seller of the home. If for any reason your loan does not close because of something your lender missed, we promise to pay the seller $5,000.
When you make an offer with a Certified Home Buyer certificate, the seller can see the lender is confident in your ability to close and will in fact ‘put their money where their mouth is.’ This is going to differentiate you from any other offer on the table. In addition, you will know your numbers, your monthly payment, cash to close, your budgets, and anything else that is important when starting your home search.
Once you receive your full approval through the Certified Home Buyer Program, you will then be able to structure your cash-like offer, giving it the strength it needs to be the best financed offer on the table.
Now, let me walk you through an example of how this actually works: My clients Sam and Katie were first time home buyers that kept getting beat out by cash offers or by people who paid way over asking. They had actually placed over 10 offers on homes with their previous lender. That is when I introduced them to the Certified Home Buyer Program. When they finally found their dream home, they made an offer using the Certified Home Buyer program and were able to get their offer accepted without being the highest offer. The seller had the certainty they required to close.
So, if you’re thinking about buying a house you need to keep in mind that the stronger your financing, the better your offer. The best way to get your offer accepted in this market is through a fully verified loan approval, giving the seller absolute certainty that your loan will close.
Find Out If it’s Right for You
If you have any additional questions about how the Certified Home Buyer Program works or if you are looking to get preapproved for a new mortgage, please reach out to the Rebecca Foote Mortgage Team we would love to work with you!