Standing Out From Other Offers
Your preapproval letter is the most important, but some buyers also invite the seller, as well as the seller’s real estate agent, to contact your loan officer directly to talk about the status of your loan application.
While your loan officer won’t provide them with any credit scores, what your loan officer can say is that your credit has been reviewed and approved, you have more than sufficient funds needed to close, and your income and employment have been documented. Your loan officer will be good at painting your financial picture and will be motivated to do so.
Here is a little-known secret that buyers need to know about. When a seller’s real estate agent receives an offer and asks for a preapproval letter, encourage the agent to contact your loan officer. Agents can be very skeptical of your preapproval letter if the agent doesn’t know who the loan officer is, and this is very often the case. Too many times, the agent has experienced receiving a letter from a buyer, only to have the deal fall through.
When an offer is accepted and the home is temporarily taken off the market, it’s not getting very many views during this period as potential buyers write it off as a prospective purchase because there’s a pending contract.
However, in very hot markets, backup offers can be accepted. In this instance, the multiple listing service will say something to the effect of, “Pending: Accepting Backups”, letting other agents know it’s okay to submit an offer while the home is in escrow.
After the back and forth, you will ultimately arrive at a price you’re willing to pay and an amount the seller is willing to take. Now, the clock begins to tick, and an escrow date is set.