This was a wonderful article that Carrie Stone with United Home Loans shared with me, it perfectly explains why I longer include this with offers.
Have your pre-approval ready; let’s go in over the asking price; and it might help if you write a letter to the seller… *record scratch* … Oregon recently passed a law banning letters to sellers, dubbed “love letters.” And more and more listing agents across the country are asking buyers to leave the letters off the table. In a market where every little detail counts, how can we use our mortgage expertise to replace (and then some) the practice of writing letters?
Why did they ban “love letters”?
Consider some typical topics contained in these letters… We couldn’t imagine a better backyard for our children to play in… With Christmas coming up, we can see ourselves hosting family in this house… Now consider that fair housing regulation prohibits discrimination based on familial status, religion, and a whole host of other protected classes. While very unlikely that most of these letters are written with deceptive intent, biases do exist, and regulation is designed to keep personal bias out of the housing market.
There’s no arguing that a loan program will ever have the heartwarming touch of a personal narrative. But the right loan program does give your buyer a fair, and maybe even more substantial,advantage.
To make non-contingent offers, turn to a Bridge Loan. Existing homeowners can use the equity in their home as the down payment on the next one with a Bridge Loan. In this “buy now, sell later” scenario, your buyer is able to make a more appealing offer than if they required a contingency clause.
Get pre-approved for a 3% down loan that is not FHA. Not all sellers will accept an FHA loan. But that doesn’t mean your buyer needs to come up with 5% in order to make an offer. HomeReady and HomePossible loans are conventional programs that allow 97% LTV.
Step One: Pre-Approval
Depending on your buyer’s unique situation, there are a host of solutions available. But the universal advantage point? Pre-approval. Anytime you need one, you know how to get in touch with me.
Vice President, Mortgage Lending
United Home Loans