VA MORTGAGE 100: Home buying season is just around the corner

Spring is the kick off for many things. Cleaning, planting, spring breaks at the beach, and home shopping. No one likes to go to an open house in the rain. So when the spring sun starts shining, the open house signs start popping up like Dandelions.

If you’re planning on pulling the trigger on a new home purchase make sure you get your offers in ASAP! Deals can still be had without all the competition of buyers trying to outbid one another. But come the summer months you can expect to submit your offer with as little contingencies as possible if you want to come out on top of the pack.

One of the biggest contingencies for current homeowners is having to sell your current residence in order to qualify for the new home purchase. This can be a road block because there is no guarantee that you will sell your home, which could leave everyone hanging in suspense. Another common contingency is having the seller dip into their profits and pay for your closing costs. With multiple offers on the table, and some agreeing to pay OVER the asking price, asking your agent to negotiate seller concessions will make the elimination process easier for the seller.

If you want to increase the chances of your offer getting accepted you have to compete on a higher level. The highest level is an all cash offer. This type of offer can close escrow in 7 days. What seller wouldn’t want that? Only thing is, all cash buyers are few and far between, which means your offer really needs to stand out amongst the other offers with financing.

If you’re not an all cash buyer and are relying on financing to purchase your home, the best way to approach this is to get your loan fully Pre-Approved. NOT Pre-Qualified, but Pre-Approved. This means that you’ve applied for the loan, submitted all supporting documents, such as, income, financials, assets, and have had the loan fully underwritten based on your personnel profile. This is the second best thing to an all cash buyer. The money is actually standing by waiting for you to find a property. Now, the property cant be a fixer upper because it will need to pass the appraisal process.

Other things that help win offers is financing type. If you want to stand out in the crowd here is the order of best to least when it comes to financing types.

1. Conventional (20% down, least contingencies)
2. VA (backed by the government, 100% financing)
3. FHA (backed by the government, less money down)
4. Non QM (this is non traditional financing)
5. FHA with Down Payment Assistance (most contingencies and most conditions for approval)

No matter how you approach buying a home, unless you’re an all cash buyer, get Pre-APPROVED. Take the full credit app, and send all your financials in for a forensic review. Banks like Mutual of Omaha Mortgage have apps you can install on your mobile device to get the ball rolling in minutes. Getting Pre-Approved will greatly increase your chances in obtaining a deal to buy the home you’ve been wanting.