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Mortgage News Matters

How to Get Your Contract Accepted: Tips on Making Your Offer

Making an offer is a thoughtful process that should be done with great care and consideration. To help, we’ve shared 8 helpful tips for getting your contract accepted.

  1. Get pre-approved. Getting preapproved by a lender before making an offer tells you how much buying power you truly have and helps pre-determine your bottom line.
  2. Offer earnest money. Earnest money is a deposit made from the buyer to the seller once the offer has been accepted and is typically kept in an escrow account. This ‘good-faith deposit’ shows the buyer’s commitment in selling the home and can be kept as cash or later applied towards the purchase of the home.
  3. Shorten inspection, or due diligence period. The due diligence period is the time between signing the contract and inspection of the property. During this time, the buyer still has the option to walk away from the sale. Shortening this period separates the serious buyers from those who are not so sure.
  4. Reduce or eliminate certain contingencies, such as inspections or move-in dates. This reduces common time-consuming obstacles to the home buying process.
  5. Include an escalation clause. Ideal for a multiple offer situation, an escalation clause states that your bid will automatically raise, if another buyer bids higher than you. This allows buyers to continually remain on top of the competition.
  6. Submit an offer letter. A personal note expressing an emotional connection to the home shows the seller that you are not just any other buyer – you genuinely care and would take great pride in owning their home. This also helps to provide buyers with a competitive edge.
  7. Make a clean offer. A clean offer is a simple offer. Meaning, it is easier to close. Clean offers refer to those that have short financing and appraisal contingencies, and a shortened due diligence period. Clean offers are essential when buyers find themselves in a competitive seller’s market.
  8. Present a strong (or best) offer price. If it is in your budget to do so, consider offering more than the asking price. This will set you apart from other buyers and provide you a competitive edge.



To learn more about making an offer and tips to getting your contract accepted, contact your local VanDyk Mortgage Loan Originator today!

Categories
Mortgage News Matters

Sit Down with Steve Richman

We sat down with VanDyk’s new National Director of Strategic Growth and Branding, Steve Richman to talk about his new role and his plans on growing the team with a thoughtful approach while building brand awareness and bringing an exceptional client experience to every interaction.

Q: Why do you want to work with VanDyk?

Q: What sets VanDyk apart?

Q: Can you talk a little about your title and responsibilities?

Q: What can we expect to see happen in the industry in the next couple of months?

What is your perspective on customer service?

Categories
Mortgage News Matters

How to Prepare for your Homebuying Journey

So, you’ve decided you’re ready to buy a new home? Congratulations! Now you’re probably asking yourself, what’s the next step? There are plenty of things you can do to prepare yourself for the next step on your homebuying journey, and we listed a few below to help you on your way!

  1. Know your credit score. A good credit score is essential to any new or prospective homebuyer. It gives your lender insight into how reliable you are as a borrower, and ultimately, whether they will lend to you or not. To obtain a free credit report, go to annualcreditreport.com and enter your information. Once you have accessed your reports, you can review and dispute any errors you find.
  2. Consider taking a home buying class. Homebuying classes can prepare you for things you may have not even thought about as a new homebuyer. These classes can give you information on saving for a down payment, searching for the right mortgage loan program for you, working with a real estate agent and so much more. They are a great way to get answers to questions you didn’t even know you had.
  3. Implement financial planning techniques. Saving towards any large monetary goal doesn’t happen overnight. Consider implementing money-saving techniques 3-6 months before purchasing your new home. This can be by setting up automatic transfers to a savings account, savings bonuses, raises, or tax refunds, applying for a credit card with cash rewards, and by not taking on any new unnecessary expenses, such as a new car payment or lease. These simple actions can make all the difference when you’re finally ready to make your big purchase.
  4. Get pre-approved. It is helpful to get pre-approved for your mortgage loan early on in your homebuying journey. Getting pre-approved will allow you to set your budget, which in turn helps you narrow your search.
  5. Communicate regularly with your lender & realtor. One of the most important ways to prep for buying your new home is by consistently communicating with your lender and realtor, so they can help with any questions you may have. The home buying process can feel overwhelming for anyone, regardless of it being their first home or their fifth. Clear and open communication with your real estate professionals is the best way to create a seamless homebuying experience.
Categories
Mortgage News Matters

How to Navigate a Seller’s Market

Since the start of last year, homes for sale have been on the decline, while housing prices have continued to rise.

The combination of stay-in-place orders brought on by the pandemic and the rise of low mortgage rates in efforts to encourage homebuyers has only widened the gap between supply and demand.

Because of this, we find ourselves in a constant state of a seller’s market.

What is a Seller’s Market?

A seller’s market is when the number of buyers exceeds the number of homes available to purchase.

What Does This Mean for Buyers?

With homeowners choosing to stay in their homes for longer and mortgage rates becoming more affordable for a larger number of borrowers, appreciation of homes has only continued to increase.

This means that buyers must stand out while remaining diligent in their search, and buyers who are just entering the market should be prepared to bid over asking and waive certain contingencies if they hope to purchase a home soon.

What Does This Mean for Sellers?

Sellers, on the other hand, have the luxury of being picky. With the value of their home most likely continuing to increase, they can take their time when deciding on who they want to sell to and can expect a bid over asking.

For more on this, check out our post of Tips for Buyers in a Seller’s Market.