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How to Get the Advantage in Making a Competitive Offer

In today’s competitive housing market, multiple offers on a property has become increasingly common as home inventory levels remain significantly low. Buyers are often asking themselves what they can do to set their offer apart.  While outbidding on price or dropping inspection contingencies are popular options, in some markets, it is not enough. 

From the seller’s standpoint obtaining an offer with a mortgage commitment that is only subject to an appraisal and a verification of continued employment is only beaten by a similar cash offer.

As a mortgage lender with many clients affected by the multiple-bid housing environment, I am currently offering my clients the opportunity to get a full mortgage commitment (TBD Approval) prior to them finding a home. What this means is my client’s loan application is fully reviewed by an underwriter and approved before they even put in an offer. This allows for a much quicker settlement whereas my buyer’s information has been verified already.  Most buyers are only pre-qualified and not fully approved. Unfortunately, at times, there are mortgage lenders out there that do not do their due-diligence and issue pre-qualification letters on false or misinterpreted qualification information.   This does not happen with our clients. I am encouraging my buyers that have not yet found a home, to submit all their paperwork to receive a TBD Approval, that way when they do find a home to put an offer on, they can submit their underwriting approval certificate with their offer, showing they are a much stronger borrower that can close on the home faster than the average buyer. 

Typical Documents Needed For the TBD Approval (we may need less but it will vary):

  • Two Years of W2s/1099s and Federal Tax Returns

  • Pay statements

  • Profit and loss statement for self employed individuals

  • Proof of other forms of income (real estate, child support, alimony, etc) if applicable.

  • Bank statements / source of down payment funds

  • Government issued photo ID

  • For properties owned: mortgage statements, property taxes, insurance declaration pages

Example Below:

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For more detail Kevin Berju NMLS #137213 PhillyMortgageTeam@afncorp.com 215-681-3587



Article Written By: Kevin Berju 

American Financial Network NMLS # 137213

Looking for a Lender in Philadelphia? Contact the Philly Mortgage Team. Click below.

 

Kevin Berju starts Philly Mortgage Team with over 25 years in the mortgage industry. Prior to working with residential and commercial mortgages, Kevin graduated with a business degree from Temple University, owned his own business, and worked as an agent for years in both commercial & residential Real Estate. With Kevin’s diverse knowledge of the real estate and mortgage industries, his clients are thoroughly guided throughout their home buying or refinance process. As a result of his knowledge, attention to detail, responsiveness to his clients, and exceptional work ethic, Kevin was awarded the Five Star Mortgage Professional recognition in Philadelphia Magazine for the past successive years as well as reaching the top 1% of all originators country wide since 2012 as designated by Mortgage Executive magazine.

As a mortgage professional for over 2 decades, Kevin is an invaluable resource for both first-time and experienced home buyers. With his accomplishment of the Certified Mortgage Planning Specialist designation, Kevin is placed in an elite group of the top 5% of mortgage professionals in the industry. Looking to Purchase or Refinance in Pennsylvania, New Jersey, or Florida? Kevin Berju is the Lender for You!

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Venture Philly Group

Buy. Sell. Invest.

info@venturephilly.com

o. 215.592.9522

604 S Washington Square, Philadelphia, PA

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