The last post covered reasons why we have such a sellers’ market in Atlanta real estate. Now let’s cover how a lender can help win a contract. We lenders have a few ways to help strengthen our buyers’ offers relative to competitors.
Firstly, many listing agents prefer to work with local lenders rather than the national and online lenders. The Realtors also like the ability to communicate with local lenders – they can call us with any issues or questions and often get a faster response than with a national lender. I once had a Realtor who was listing a home tell me, “We chose your client’s offer because they had a letter from you, and we know that you would make the closing happen on time.” Trust is important and we local lenders work hard to build that trust in our markets.
Secondly, when my clients make an offer, sometimes the listing agent will call me to verify the information provided in the prequalification letter. I’m always happy to talk with the agents, and I use this as a chance to actively promote my client’s strengths. I once took a call from a Realtor on the Saturday of a holiday weekend. When I answered she immediately responded, “Oh thank goodness! A lender who works Realtor hours not bankers hours.” We can be available on weekends and in the evenings to help our buyers. I have volunteered to proactively call listing agents on my client’s behalf. It helps to promote my client’s strengths.
The most powerful way a lender can help a buyer win a contract is to underwrite the buyer with a “to be determined” property — before the buyer actually makes an offer. We fully underwrite the buyer, but without the property-specific details. So there’s no appraisal, no title work, etc. (until a house is under contract). This gives the ability to provide a letter stating that underwriting has already approved the borrower. It also allows us to shorten the closing timeframe (since we don’t have to underwrite the buyer again) and potentially eliminate the financing contingency, which is standard on most home purchase contracts. Having underwriting approval positions the buyer strongly relative to other offers with only prequalification letters. The only offer stronger is a cash offer. In competitive markets expecting multiple offers on listed homes, this approach can position the buyer to better win.
If you have a friend or family member who has been making home purchase offers and is frustrated about not winning, have them contact me. We at Dunwoody Mortgage will do everything possible (from a lender perspective) to help them win.
