How to Stand Out in a Sea of Hungry Buyers (and low inventory!)

Posted by Erin Salem on Friday, March 30th, 2018 at 11:42am.

After the housing market began to collapse in 2006/2007, home values plummeted. Lenders needed to protect themselves, so folks who would have qualified for a home loan in the years prior were now out of luck. Foreclosures were rampant.

Now, almost 10 years later, we at Round Table Realty are watching homes regain value and buyers are racing to scoop up houses within days of hitting the market. We can help buyers make financially sound offers based on market value, but we also have incredible relationships with mortgage lenders in our community who know how to make our clients stand out amidst of sea of hungry buyers. 

In this video, Carlos Wilcox from Movement Mortgage chats with Howard about the different financing qualifications:

It used to be that a buyer's pre-qualification letter for a loan from a mortgage lender was included with their offer to appeal to the seller. It demonstrated that the buyer can finance the home (and that the deal won't fall through). But as Carlos explains in this video, that pre-qualification letter only means that the buyer submitted an application and that at first glance, a loan officer has given the green light to continue the loan approval process. It doesn't guarantee that the buyer has obtained the financing. 

Then there's a pre-approval letter. While a buyer presenting this letter to a seller along with their offer is more promising, it's still only backed by a loan officer doing a deeper dive into the buyer's financial background. It still does not mean financing is approved. 
Confusing, right?!

Well, in actuality, only an underwriter can approve the decision for a lender to finance a home for a new buyer. The loan officers work very closely with the underwriters, advocating for you and your purchase, but they cannot make the final decision. That's why Movement Mortgage offers something called a loan commitment letter. Before shopping for a home, Round Table Realty can suggest you begin the loan application process and get a loan commitment letter from a company like Movement Mortgage, which is a letter from the underwriter that demonstrates you are, in fact, legitimately qualified for a home loan. (And sellers love that!)

We take these extra steps for our clients because we genuinely love seeing them get the keys to a dream home. Building relationships with lenders, electricians, roofers, inspection companies, (heck even landscaping companies!) is one of the ways we continue to put people before property. We want you to have the best, most up-to-date information and the most qualified people on your team!

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