Kopa Real Estate Blog

Most people are surprised when I tell them their choice of a mortgage company can be the deciding factor in whether or not their offer is accepted in a multiple offer situation. The truth is the Austin real estate market is so competitive the mortgage company and the type of loan can make or break an offer.

I’ll often hear advice given that a buyer should write a letter to the seller to gain an emotional advantage. In reality a strong pre-approval letter is much more important than showing a picture of your family and telling the seller how much you love the home.

1. The Mortgage Companies Reputation Among Realtors Is Important
Make sure the lender has a great reputation with Austin real estate agents. Real estate agents talk to each other about bad experiences with mortgage companies. As a consumer many of the lenders you might think would help your offer might actually make it worse. If the listing agent has had a bad experience with that lender or has heard about bad experiences from other agents they will certainly pass on their opinion to the seller. That may be the deal breaker in getting your offer accepted or losing out to someone else.
We can never tell someone they need to use a particular lender but we can recommend a few local Austin mortgage companies whose reputations are impeccable. When a listing agent sees you are working with one of these lenders they will look more favorably on your offer.
2. Don’t Wait Until You Find Your Dream Home
I see it over and over again. Someone stumbles into an open house on Sunday. The house is perfect and they want to make an offer even though the potential buyer hasn’t been pre-approved by a mortgage company. At that point it’s probably too late.
If there are multiple offers made on the home an offer without a letter of pre-approval from a mortgage company won’t be given much consideration. Chances are the seller isn’t going to wait until Monday for you to be pre-approved.
3. Get A Strong Pre-Approval Letter
As a listing agent I do read the details on pre-approval letters. Make sure the mortgage company has checked off they have reviewed your documents. Also, make sure the terms match up with the offer you are making. Nothing raises red flags more than an offer with 20% down and a letter saying the buyer is approved for a FHA loan. You don’t want your pre-approval letter to create more questions in the sellers mind.
I’ll often hear advice given that a buyer should write a letter to the seller to gain an emotional advantage. In reality a strong pre-approval letter is much more important than showing a picture of your family and telling the seller how much you love the home.

If you need a referral to a great lender call me at (512) 791-7473. Once I find out a little about your situation I can recommend a few great lenders who will help increase your chances of getting an offer accepted.