Like a good financial black belt, you’ve begun with the end in mind, taken stock of your assets, and strategized your winning moves, whether you’re considering real estate investing, a vacation home, downsizing or Jumbo-sizing. Now it’s time to get locked and loaded with a bulletproof Pre-Approval that will seal your next deal.
Last year, 59% of the homes on the market in the Grand Rapids metro area sold over the asking price. It’s a distinction that landed Grand Rapids in the top twenty real estate markets in the country.
Pundits predict the spring market will be equally robust because the conditions that contributed to the competitive market — difficulties securing construction materials and labor, plus the shortage of housing inventory – remain.
To win the bid in such a hot market, you need the right partner and the right paperwork to reassure the seller’s team that you have the power to close. And that’s where “thinking outside the bank” pays off. It’s where you put the pedal to the metal to power through the noise of the spring market.
Rock Solid Docs
Pre-approval is different than pre-qualification – and smarter. A pre-qualification is just an educated guess. With a pre-approval, you’re doing all the financial due diligence upfront, including income verification, analysis of debt-load, and credit history review and verification. This allows for property and price-specific approval letters on demand. Not only does that make your offer stronger, but it is also a smarter way to negotiate.
ProActive Vetting
While Guild Mortgage’s process is streamlined for fast turnaround, the smart money move is to engage in the process long before you start house hunting. This gives you a chance to optimize your rate and mortgage program, which could save you thousands on closing costs, down payment, or interest rates.
Offer Analysis
Together with locking in the best loan structure and down payment a winning pre-approval strategy includes consideration of aspects unique to the specific home you’re offering on. For example, to strengthen your offer you may wish to include a shorter inspection period, an escalation clause, or an appraisal gap. A blackbelt knows it’s not always the highest offer that wins!
When you’re “thinking outside the bank,” you’re primed to win your bid. Front-loading the work means once your offer is accepted, there’s little more to do but relax – and pack! It’s the best way to make a winning move.
