Post Content

Ask McEnearney: How Can the Lender I Use Give Me a Competitive Edge?

This week’s Q&A column is sponsored and written by Brian Bonnet, Senior Loan Officer (NMLS ID# 224811) of Atlantic Coast Mortgage, LLC (NMLS ID# 643114). To learn more about current mortgage rates and the home loan process, contact Brian at 703-766-6702 or email [email protected]. You may also submit your questions to McEnearney Associates via email for response in future columns.

Question: How can the Lender I use give me a competitive edge?

Answer: To say home purchasers are experiencing a competitive market is far more than an understatement. The inventory of homes for sale in Alexandria and Arlington is down approximately 40% from this time in 2019 and that inventory was down significantly from the year before. Most prospective purchasers find themselves competing against others for the limited property which is available.

In order to be an actual buyer and not just a looker, you must be more attractive to sellers than those you are competing against. Obviously, your offer price is a big part of the equation, but assuming you are in the hunt in that regard, there are several other considerations which savvy listing agents suggest their sellers consider. Among them are home sale contingencies, the buyer’s proposed lender, and the proposed settlement date.

When sellers have options, they are almost always inclined to accept an offer that is not contingent upon the sale of another home as opposed to an offer which is. For buyers, the trick is to determine whether it is truly possible to purchase the next home without first selling the existing home.

To be able to do so often requires some sort of bridge loan scenario, and that is a type of financing not provided by most lenders. Generally, bridge loans are provided by a handful of locally based mortgage banking institutions who tend to understand the local real estate market more than much larger or nationally based companies.

Engaging a local company which provides special bridge loan products when you begin to think about purchasing a new home may make the difference between your contract being accepted over that of someone else.

In our local market most applicants are approved for the financing they seek, but not all. In too many cases, prospective purchasers are sent down a path to purchase a home only to be denied the financing they understood they would receive. Often that unfortunate news comes just before the expected settlement date. To avoid this scenario, it is imperative that lenders truly know whether a buyer is going to be able to obtain the financing they need before the contract offer is made.

Wise and experienced listing agents are generally wary of contracts where the proposed lending institution or loan officer is either not known at all, or worse, known to fail from time to time. With two offers on the table at the same proposed sales price, the purchaser who proposes to get their financing from Bank of the World or Skippy’s Mortgage.com will often loose to the offer where the lender is a local lender with a positive reputation.

How quickly a buyer can close the transaction is often a consideration of sellers. If you are the seller, you generally want the transaction settled with the proceeds in your bank account sooner rather than later — even if you are not ready to move out of the home you are selling.

Successful buyers quite often propose settlement dates as soon as two to three weeks after the contract ratification in order to make their offers more enticing. Wise listing agents know that many, if not most, lenders cannot perform that quickly. Again, generally it is the well-known local lender that can process and underwrite an application and be ready for settlement in three weeks or less.

Some people enjoy the process of simply searching for a new home and writing contracts, but if your end goal is to be successful in purchasing a home, you truly need to consider every aspect of your offer and how attractive it may be to the seller. Purchasers should consider the reputation of the lending institution, the nature of the proposed financing and how quickly the lender is able to be ready for settlement. The seller likely will.

If you would like more information to help plan your next move, please contact Brian Bonnet at [email protected] or call 703-766-6702.

If you would like a question answered in our weekly column or to set up an appointment with one of our Associates, please email: [email protected] or call 703-549-9292.

McEnearney Associates Realtors®, 109 S. Pitt Street, Alexandria, VA 22314. www.McEnearney.com Equal Housing Opportunity. #WeAreAlexandria

Recent Stories

The City of Alexandria is fighting with residents over a new development in court, but the battle spilled over into a public comment section that ended with a rebuke from…

Zero waste boutique Mason and Greens (913 King Street) seemingly closed in Old Town earlier this month. The store closed earlier this month with no public notice. Calls to the…

There’s a concert of flavors happening with the newest treat from Goodies Frozen Custard and Treats (200 Commerce Street) in Old Town. Owner Brandon Byrd is collaborating with local Girl…

Starting next week, Alexandrians can reserve picnic areas around the city for birthday parties, quinceaneras or other celebrations and events. The rental season runs from April to October. The parks…

Are you looking to work on health and fitness from the comfort of your own home?

Skip the big box gym and try out our in-home personal training service. We bring the gym to you so that you can save time and avoid the hassle of going the the crowded gym.

We bring all the equipment you need for a solid workout and if you have a community gym we can use that too.

We offer programs that will help with weight loss, strength, flexibility, more energy and overall feeling better.

Read More

Submit your own Community Post here.

Peace in Gaza: Prayer Liturgy and Community Discussion for Peace in Arlington VA, Sunday, Feb. 11, 10:15 AM

Prayer, liturgy, and community discussion for peace in Gaza, an immediate cease fire and resumption of humanitarian aid will be hosted by Nova Catholic Community. The focus will be Pope Francis’ call for an immediate ceasefire, the release of all hostages, resumption of humanitarian aid for Palestinians in Gaza, and peace talks for a lasting and just peace for all people in the region.

Discussion will follow at Noon on US military role in the conflict and appropriate steps the US should take to foster peace and rebuilding. Light lunch served.

Read More

Submit your own Community Post here.

2nd Annual Pysanky Party This Sunday

Again this year, The Critical Mass, LLC, the Made in ALX store and local Ukrainian-American artists are throwing a Pysanky Party — and partnering on a fundraiser for the nonprofit organization Razom for Ukraine.

The free event, from 5 –

×

Subscribe to our mailing list