Having your financing ready before you start shopping for a home is essential for your success as a home buyer in Arvada and across the Denver metro area.
Recently, this point was driven home during contract negotiations for a Dempsey Group listing:
A buyer toured one of Dempsey Group’s Arvada homes for sale. She saw the home twice and was eager to make an offer. Her agent indicated she intended to submit a cash offer with the help of her parents but needed to secure financing first. It seemed promising, but things quickly changed.
A few days later, the sellers received an offer from another buyer, which put the first buyer in a difficult spot. Her parents faced delays with their financial advisor, forcing her to get a pre-qualification letter from a large, impersonal mortgage company just hours before submitting her offer (a pre-qualification letter is not as strong as a pre-approval letter).
At the same time, the second buyer had already secured full underwriting from a trusted local lender. This led to a multiple offer situation. Both buyers came back with stronger offers, with the first buyer offering a higher price. However, the second buyer’s offer was very close in price and came with the advantage of a much quicker closing and more secure financial situation.
Today’s market is nuanced and the certainty of closing is crucial – sellers want to avoid going back on the market if a deal falls through. Certainty to close can be more powerful than price sometimes.
In this real-life situation, the sellers chose Buyer #2 because they had a reliable local lender and were ready to close quickly. Unfortunately, Buyer #1 lost out because her finances weren’t in order. Not only did Buyer #1 lose the home, but had she won it, she would have ended up paying more than she would have had she offered sooner and her financing had been secure – due to the delays in securing her financing, a multiple offer situation took place, increasing the price.
Home Buyers, Here Are Two Takeaways:
Always have your financing ready before shopping: This ensures you can act quickly when you find your dream home.
Work with a local lender: They understand your market and might even know the seller’s agent, giving you a competitive edge.
The Denver real estate market can be challenging and be filled with hard decisions to make, but being financially prepared can make a significant difference. As your trusted realtor in Arvada and Denver, CO, Lauryn Dempsey is here to guide you through every step of the process. Reach out to the Dempsey Group today and find your dream home tomorrow!
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