Today, Buyers are at a disadvantage because of the lack of available homes for sale. Which means Sellers have their choice of multiple offers to choose from when they put their home on the market. Buyers are often competing with all cash offers and other highly favorable financing terms.
We all know cash is king. When purchasing a home in a highly competitive environment, being able to write a cash offer gives you a huge advantage. Cash offers are three times more likely to beat a financed offer AND receive 2% to 5% discounts.
Additionally, there is so much competition in the market today, that writing a contingent offer (meaning your offer is contingent upon the sale of your current home) has little to no chance of being accepted.
Lenders are recognizing the challenges the average Buyer is facing and seizing the opportunity by developing creative programs designed to solve these problems and win your business.
Knock Home Swap -
This is a great option if you already own a home that you would like to sell and you have significant equity.
Knock is a full-service lender that works in three ways. One, they offer a non-contingent preapproval to purchase your next home based on the equity you have in your current home.
KNOCK will advance you 20% of the equity in your current home for a down payment on your new home. With the KNOCK preapproval and down payment, you are able to make a non-contingent offer on your next home.
The cost for the program is 1.25% of the purchase price of your new home + repayment of the 20% down payment + any funds advanced to prepare your current home to sell.
Accept Inc. -
With Accept Inc., If you qualify for a mortgage, you qualify to make a cash offer. Get cash approved today, and start making all-cash offers on homes. There are no hidden fees and Accept Inc. makes their money as your lender.
They currently only operate in specific markets and they don't work with VA loans. They also have a long waiting list at times, so if you are even thinking about buying, it is a good idea to work with your agent to start the approval process with Accept Inc.
Traditional lenders are getting very strategic and working with agents and their clients to create tools and offer terms that mimic all cash offers and non-contingent offers.
Appraisal Gaps, Appraisal Waivers, Bridge Loans, 21 day closings, and Inspection Waivers are just some of the tools that your agent and lender can use to help you write an ultra competitive offer. And, you don't need to have 20% down to make this happen. You just need a strong real estate agent and lender partners to help you navigate all the options and opportunities available to you.