It is a “hot” market with properties getting multiple offers and making it difficult for buyers to compete (and “win”) on a home of their dreams.  There are many ways to make your offer stand out as the best and it’s not all about the price.  John & Janice Real Estate Team recommend to their clients to personalize offers with items like photos, a letter to the seller explaining what you love about their home, and many other strategies.  The most important piece of paper to accompany your offer is your prequalification letter from your lender.  This gives the seller confidence in accepting your offer.  John & Janice Real Estate Team does not allow anyone into their listings that hasn’t been through the prequalification process.

There are many different ways to get your financing; your local bank, credit union or a mortgage broker.  John & Janice Real Estate Team recently met and spoke with Aimee Campbell of HarborOne, a Gorham resident with her office in Gorham. 

They asked Aimee what she needs for information to get a buyer prequalified. Aimee replied, “This process couldn’t be easier to be honest. Once my application is completed, I have the ability to pull your credit history and then review your income and assets so we can determine a baseline for a maximum purchase price. I then gather up your most recent paystubs, W2 and bank statements for any funds you would be using for the transaction.”

John & Janice Real Estate Team: “If a buyer doesn’t qualify at first what can you offer to enable them to get that point?” 

Aimee: “Oddly enough this is one of my favorite scenarios, there are so many people who don’t think home ownership is an option, yet it can be right around the corner! Credit counseling—line by line we will go through your credit report to see how your scores are being negatively impacted. Many times, it’s lack of credit history that hurts you. A 90- or 180-day plan will be created and from that point forward we will “hold hands” and get you to a point of being able re-pull credit and hopefully be in what we call “credit eligible” status!”

John & Janice Real Estate Team: “What should someone expect to have in cash for a down payment?”

Aimee: “The four major loan programs offer a variety of down payment options! However, take into consideration the fact that you also have closing costs which will need to be figured in. The actual down payments are as follows and are based on the purchase price of your home (these are for primary residence purchases): Conventional loans: as low as 3%; FHA loans: 3.5%; VA loans and RD loans: 0 down payment. In addition to this down payment some programs require that you show you have liquid funds for what we call “reserves” which basically just means—back up funds equivalent to two months of your soon to be mortgage payment. Pre-approvals from me are 100% the way to go in this hot market. I do your financial work upfront and make the process quick—another negotiating plus.  It basically allows you to show sellers you have done your prep work and are serious about your offer. Additionally, it takes some of the stress out of the process and you are in a position where you are prepared to “shop” for the house that feels like it could be your home!”

John & Janice Real Estate Team can be found at Bean Group 352 Main Street, Gorham. Contact them by calling (207) 808-9557. Aimee E. Campbell, Cory Scott Team with HarborOne Mortgage, can be contacted by calling (207) 329-6628.