Mortgage Applicants Report Signs of Seller’s Market

3 Easy Ways to Get Ahead As a Buyer in a Seller’s Market

1. Do your homework on a house before you make an offer.  This means, use your Real Estate agent and find out how long the house has been on the market, so you can see how “hot” this home might be.  Have them communicate with the selling agent on the prospective home and see if there are other bids on the home.  Lastly, have them get a list of homes in that neighborhood that have recently sold that compare to this one and see where the value is.  If the home hasn’t been on the market long, the comparables prove the house is listed at a good value, and there are multiple offers on the house, do not risk loosing the house by not offering near or at full price of the listing.  This is not a time to practice your negotiation skills.
2. Be available when your Realtor finds a good deal on a house.  Homes that are listed at the right price, and have all the “bells and whistles” (these are the homes that go before the lesser updated homes they compare against) will not stay on the market more than a week or two in a seller’s market.  Therefore, you do not have the luxury of waiting for the weekend or waiting a couple days to go see the home.  If your  agent says you need to see this home and get an offer on it before it goes under contract with someone else, find a way to fit it in your schedule immediately.  Good homes go very fast in this market!
3. Do not wait until you find a home to get your required documents for underwriting to your mortgage loan officer.  Get your income, asset, and identification items to them now.  This way, if you offer a similar bid as another competing buyer on a home, you can have a hand up on them by offering a closing date sooner than your competition.  Below is a list of items that us lenders are requiring industry wide right now.  Get these items to your lender and make sure they can close your home loan within 20-30 days or risk another buyer having this variable to work with you and you do not.  Many times, sellers are more willing to take an offer with a buyer who can close fast.

Items you need when applying for a mortgage (these items are the same for FHA, VA, or Convention borrowers…additional items required for VA):

1. most recent 30 days of pay-stubs from your employer
2. most recent 2 months of bank statements from your bank
3. most recent retirement statement
4. 2011 & 2012 W-‘s
5. 2011 & 2012 Tax Returns…if you are self employed, you need to get them your business and personal tax returns
6. copy of your driver’s license and social security card…most lenders will allow a copy of your passport if you don’t have your social security card
7. have your application fully completed…I have an online mortgage application that comes directly to my personally owned email.  We have a Fast Track Mortgage Process.