Deal-killers hurt buyers, sellers, and Realtors costing untold hours and heartache every year. There is a better way.
7 Deal-Killers We Help Realtors and Clients Avoid
Transaction killers are credit, competition, property, or income qualification issues that keep a buyer from getting into contract, or once in contract, prevents the lender from closing.
A good broker uses access to hundreds of lending sources that offer literally thousands of guidelines to get the best rate and terms for clients and mitigate the risk of a qualified buyer who wants a specific home doesn’t make it to the closing table.
On average, Ritter uses 25 different lenders every year while maintaining an active relationships with 50+ more to help maximize the number of buyers qualify and make it to the closing table.
1. Multiple Offers Edging Out a Good Offer
When faced with tough competition, our buyers needed an advantage to catch the Listing Realtor’s eye. We created a digital offer showcasing our clients qualifications and the professionalism the seller could look forward to working with by accepting our offer. The listing agent later confirmed that our presentation made the difference in our clients winning, because he felt confident in advising the sellers to go with our offer. Here is an example of what our digital offer looks like. (The information is for demonstration purposed only. A live offer is linked to a video of Offer Terms.)
2. Bank Declined Due to Condo Litigation
Our buyers wanted to live walking distance to work in a specific, new luxury condo project. Unfortunately, they initially were pre-approved with a bank, and after in contract on their dream unit, their loan was declined due to litigation with the builder over structural issues covered under warrantee, which landed the property on the Fannie Mae do not lend list. Fortunately, the Realtor found out about us and gave us a call. We not only closed that unit but found three other non-bank lending solutions for that project with rates starting just a half a point higher than regular conventional rates with as little down as 20% through our lending partners who specialize in litigation condos, even structural issues on a case-by-case basis. We are now the preferred lender for the 600+ unit project. If you encounter challenges with litigation or unconventional properties, please don’t hesitate to give us a call.
3. Credit Score Too Low to Qualify and No Down Payment
Last summer, our client, a single mom, aimed to purchase a home for herself and her son. Balancing everything proved challenging at the time, and she was late on some payments in the past year, causing her credit score to dip below 580. Despite holding a good job, the cost of rent also made it difficult to save a down payment, causing another significant obstacle. Fortunately, she reached out to us. We connected her with our credit repair partner, and she diligently followed the process. Her efforts paid off, as her score increased to 640, and this spring, she successfully closed on a charming 3-bedroom, 2-bath townhouse. If you know of a committed buyer who has the means to purchase but requires assistance in navigating the path to approval, please share our link. We are dedicated to helping first-time homebuyers achieve approval.
4. Compete with Non-continent, All-cash Offers and Win
In competitive markets, it’s often challenging, if not impossible, for clients to secure contracts when up against all-cash offers if they need financing. The most desirable properties, the ones our clients covet, become unattainable if they require financing. Fortunately, we offer a solution! Through one of our unique lending relationships, we’re among a select group of roughly 25 lenders with access in the United States to this loan. This loan utilizes equity in the new home to facilitate closing, either with a down payment or cross-collateralized with a current residence, providing Sellers with a guaranteed closing like cash. Since there are no repayment rules with temporary financing, this lending solution can bridge the gap for retirees, individuals in career transitions, and others who would otherwise struggle to compete. For more information how it works and to determine availability in your area, please don’t hesitate to contact us.
Here’s the bottom line: Success lies in offering a range of options to ensure the most individuals become homeowners. Anything less fails to provide clients with tailored solutions for their specific needs.
5. Unable to Qualify Due to Taxes Returns
Our client, a 5th generation barber operating a word-of-mouth shop in the city, has a unique business model. With little overhead, no advertising costs, and multiple barbers paying him rent, he earns a handsome income. However, he faced difficulty qualifying for a loan due to his unconventional income. Complicating matters, over the years, he diligently saved his excess cash after covering expenses, aiming to purchase a home one day. However, this practice resulted in not all of his income reflecting on his tax returns. Luckily, there’s a solution! A specialized loan allows self-employed individuals to verify their income using average bank statement deposits. Over the past six months, we’ve significantly increased his purchasing power from $350,000 to well over $800,000. This enabled him to buy the ideal home for himself and his wife, envisioning a future with a large family.
6. Unlocking Reluctant Buyers
Irrespective of age or circumstances, many individuals need a hassle-free way to buy a new home before selling their current one. Having ample time to transition between homes, stage the old property for maximum return, and settle the loan upon selling the departing home appeals to various scenarios. For instance, a client who works from home may need to avoid disruptions, or a retiree might find the prospect of such a transition overwhelming or not wanting the tax implication of liquidate assets. Fortunately, there’s a loan solution for that! It doesn’t involve third parties purchasing the old home or qualifying for a conventional bridge loan. Instead, borrowers can be preapproved based on the equity in the new home or both the new and departing residences, potentially requiring no cash to close. For more information on this loan, contact one of our licensed loan originators.
7. Tap Equity for a Down Payment
Sometimes it simply doesn’t make sense for clients to incur the tax penalty of liquidating assets in order to close on a new home before leaving their old home and they just need access to some of their equity in order to get into contract and make the transition smoothly. We have multiple bridge products that help buyers tap into existing equity for a down payment, which allows buyers to qualify for the next loan without the payment on their existing home. It’s all about options when it comes to bridge and buy-before-you-sell programs, and which one best serves the clients and situation. Call us to book a strategy call for your client today!
