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With inventory diminishing daily and multiple offers being extremely common, it is of great importance that you position yourself to have the "Best Chance" to get your offer accepted. You enhance your chance of getting the home of your choice by doing the following:
- If you’re serious about purchasing a home, avoid large purchases (vehicles, jewelry, furniture) that would create additional debt/liability of any kind. A debt to income ratio that’s too high could prevent you from qualifying for the lowest interest rate possible.
- Avoid moving money around from account to account – when a lender reviews your loan package one of the things they are concerned about is the source of your funds. They will probably ask for a couple months of statements to confirm balances and if there are large deposits and withdrawals the lender may ask you to provide an audit trail detailing the source of funds.
- Do your personal budget!! When determining how much home you can afford always remember to take property tax, homeowners association dues and any mortgage payment changes (if you plan on pursuing an adjustable rate mortgage which will change your payment based on interest rates) into consideration.
- Find a realtor that understands your needs.
- Making an offer – your realtor can provide you with “comps” – these are the recent selling prices of homes in your area of interest and are important to consider when submitting an offer. Be sure to put in the contract any “contingencies” appropriate for your situation. For example, if you have an existing home and cannot afford to carry two mortgages, you may want to consider making your offer contingent upon the sale of your existing home. Of course, market conditions will dictate the sellers willingness to accept certain contingencies.
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An Equal Housing Opportunity Lender