If you’re home hunting in a competitive market, you’ve probably had the heartbreaking experience of losing out on a place you thought you would make your own. It can be frustrating and demoralizing to find out your offer was rejected in favor of another buyer. How can you do your best to make sure it doesn’t happen again?

When a seller entertains multiple offers, it’s important to understand that many different factors are in play. If you’re an all-cash buyer you tend to have an advantage, as potential financing roadblocks are taken off the table. But if you’re like most people, paying cash for a house simply isn’t an option. What then?

First and foremost, make sure you have 100% of your financial house in order. This means pre-qualification for a mortgage as well as proof of funds. Being organized and ready to go will help give you a small edge from the start. Also, be sure you work with an agent who is highly responsive to requests. Sellers don’t need to wait around for information when multiple offers are landing in their inbox.

Beyond these factors, there’s another way to boost your offer’s profile: Personalize it.

While most sellers want to go with someone who will pay the most for their home, you should never discount the emotional dynamic to the home selling and buying experience. Though sellers are ready to move on, they often want to feel as though their home is going to someone who genuinely appreciates it and needs it. Here’s how to make your offer personal:

1. Work with your agent to craft a personal letter as to why you love the seller’s home. What features do you love? How will this home help you personally, professionally, or with your family needs?

2. Include a photo of yourself and/or your family. Putting a human face on the offer can transform your offer from one more name in a pile of numbers into a genuine person worthy of living in the seller’s home. Have pets and kids? Bring them into the picture!

3. Have your agent personally deliver the offer. A lot of offers are going to be electronically transferred, dumped into a crowded email inbox. While an electronic offer can be convenient, delivering a beautifully prepared package complete with the personalized letter and picture makes an impact.

Want an agent who will go the extra mile to make your offer stand out? Contact us today:

Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com

Getting a mortgage approval can be a stressful process and deserving of a celebration. However, don’t celebrate just yet. There are some crucial things to be aware of between this approval and your funding date. Many people don’t realize that changes in your finances can cause your lender to revoke the approval, and we would hate to see that happen to you.

So, with that in mind, here are seven things you’ll want to avoid doing until after you’re funded and in the clear:

1. Don’t transfer large sums between bank accounts.
2. Don’t forget to pay all of your bills, even some are in dispute.
3. Don’t open any new credit cards.
4. Don’t lease or finance a new car.
5. Don’t change jobs or start a new business.
6. Don’t make any random cash deposits to your bank accounts.
7. Don’t accept cash gifts without making sure you have paperwork in order to explain the gift.

We realize there may be situations where something is unavoidable (such as your car’s lease expiring, or fighting over a large medical bill), but before you do anything, you may want to talk to your loan officer about the situation to determine if it may have an adverse effect on your approval.

If you have any questions, contact us today!

Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com

Are you doing the math these days around renting versus buying a home? Trying to decide if you can afford to buy? If so, you’ve probably Googled one of the many “rent versus buy” calculators out there to help you get a handle on your budget.

True, they’re helpful, and they can also help clue you in to things like insurance expenses and property taxes, but they overlook a number of key factors in the decision.

1.)A mortgage is a surefire way to build wealth. Provided you don’t buy more home than you can truly afford, your mortgage is like a mandatory savings account. A portion of your payment each month is going straight into your equity in your home. With renting, it’s your landlord who is building equity, not you.

2.)The tax situation has profound implications, especially in expensive markets. Until the laws change (and there’s little probability they will any time soon), your mortgage interest and property taxes are deductible on your income taxes. In expensive markets, this can represent massive deduction. (Also remember: Early on in a traditional mortgage you pay the most in interest and your deduction is the highest.)

3.)Renting puts your wallet at the mercy of the market more often than buying. If you have a year-long lease on an apartment, your rent could go up significantly should the rental market heat up. Your rent isn’t likely to stay the same over a long period of time. In most cities, in fact, it will steadily go up. With a standard mortgage, however, your payments are fixed and predictable. It might seem like a lot at first, but if you buy within your means, it’ll seem like less and less of an expense as the years go on.

4.)A mortgage gives you more future financial flexibility. The longer you have a mortgage, the more equity you build. The more equity you build, the more options you have to borrow against that equity or use it in ways which may be advantageous for debt and tax purposes. With renting, no such long-term benefit exists.

The key here, of course, is accepting the fact that you must buy a home you can afford which is priced in accordance with the market. Even if you’re not ready today, having a conversation with a Realtor(tm) will help you prepare for tomorrow.

How does renting look now? Should we have a conversation?

Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com