A NEW OPTION FOR HELPING BUYERS COMBAT MULTIPLE OFFERS
There’s intense competition for homes in areas where home inventory is low, and cash buyers often get the nod in situations where there are multiple offers.
But there’s a new option for non-cash buyers that could help them compete in these situations, according to an article in the New York Times.
Some mortgage lenders are beginning to offer “pre-underwriting.” Rather than a simple pre-approval for a loan, which is usually based on the borrower’s credit report, pre-underwriting is a complete review of all documents that would be required for loan approval. This “pre-underwriting” strategy puts borrowers on more equal footing with cash offers.
Pre-underwriting is much more involved and time-consuming than a typical pre-approval, so not all buyers are eligible, but that could change in the future.
No two markets are the same, so if you have questions about your market and your financing options, get started by contacting your trusted real estate professional.