How Can I Make My Offer More Competitive - Putting More Money Down

How can I Make My Offer More Competitive? Putting More Money Down then loan requires.
This competitive advantage is a little more complicated than others, but can be a big competitive advantage when trying to get an offer accepted in a competitive situation.Show more

First, it is important to know that the amount that you put down on the offer for your mortgage contingency is not the amount that you are required to put down. What this amount means is if you can get the loan at that amount down, then you must proceed.

Let’s say that I can put 10% down on a house, but I want to put 5% down. Maybe me putting 10% down would require a gift from my parents or having to pull money out of my 401k.

So, can I put 10% down on my offer if I really want to put 5% down? Yes, this would mean if I was not able to get the loan putting the 5% down, but could putting 10% then I would have to move forward with the loan otherwise I could lose my deposit.

I can’t stress enough that if you do this, you need to be prepared to have to come up with the additional funds. As down payments go, 5% looks better than 3% and 7% looks better than 5. The more the better, but don’t put an amount that you could not fulfill.

The Buyer Power Checklist breaks down an offer buying power into three different categories. A buyer's offer will either be in the 'Low', 'Average' or 'High' Buying Power category.

https://www.boston2.com/blog/how-can-i-make-my-offer-more-competitive-the-buying-power-checklist/

Jeffrey Chubb | Chubb Homes Team | 617-480-2600 | Jeff@Boston2.com | www.Boston2.com | Brokered by eXp Realty