What Does It Take to Make an Offer?

WHAT DOES IT TAKE TO MAKE AN OFFER?

LENDER PRE-APPROVAL LETTER

A pre-approval letter from your lender is a very important part of any offer. The amount that shows how much you are approved for in the letter, should be at least the amount you want to offer. Local lenders are best and it’s more strategic if the amount in the letter matches the amount of your offer. The lender you select can put you at an advantage or disadvantage. We suggest local lenders and one that could potentially meet in person if needed and talk to the sellers agent during non- business hours. And, a lender with a bad reputation or one that’s Internet-based can cause a seller to select another offer because this choice could be perceived as the highest risk.

EARNEST MONEY DEPOSIT (EMD)

This deposit shows that you are operating in good faith and the amount of this deposit is typically 3 to 5 percent of the offer price. This check should be made payable to the settlement company. The check will be processed within approximately 5 days of your offer being accepted. Some settlement companies offer an online option to process this deposit.