Mortgage Blog
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How to Be Competitive Buying a House with Multiple Offers
February 26, 2020 | Posted by: Andrew Wade
Now is the best time to get organized to increase the chances of your offer being accepted as the winning bid on the house of your choice. By having all your paperwork together and ready to go will enable you to make a solid offer in which we can pre-approve your maximum purchase price.
Everyone is different when it comes to their income, so of course you will have documents specific to how your income is made, what your financial responsibilities are, and your downpayment.
No matter what your income situation is, if you're serious about buying property, being ready with a pre-approval could make all the difference in getting the deal on your dream home. In today's real estate environment, with multiple offers on most properties, sellers are often choosing the bid with the least contingencies.
Here's what you can do to be as prepared as possible to reduce the amount of time it takes to get you fully approved for your purchase:
Preparing to Get Pre-Approved for a Mortgage
The first step of course, is to contact your mortgage broker - the earlier, the better. Together you'll go over all the necessary specifics regarding your income.
Specifics we'll need to go over include:
How Your Income is Made
Meaning, whether you are an employee, self employed, have rental income, etc.
What Your Credit Score Is
We'll do a check to see what your credit looks like; if it is good enough now to get approved or needs to be tweaked in order to get you approved.
On that note, it's good to know how much debt you carry monthly and whether or not you have child/support - or other recurring payments.
How You'll Pay the Downpayment
The last (and also most important) part, is going over your down-payment sources. We need to know whether or not you're receiving a gift from immediate family members to help you get into the market, using your RRSP's (they need to be in there at least 3 months prior to withdrawing them), or using a line of credit, etc. We need to know where the downpayment funds are coming from and make sure it's realistic for timing the closing of the purchase.
Mortgage Costs
Essentially, mortgage lenders want to know where your money comes from, how much debt you are currently carrying, what your history of paying back debt is. And you need to know what costs are attached to your mortgage.
Final Thoughts
After you wrap your brain around this you will be MUCH closer to being fully prepared on making a PRE-APPROVED offer so you can be as competitive as possible for the real estate market in your area.
Contact me today to get started on your mortgage pre-approval!
