Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Recently we make an offer in a house, our Realtor told us that the house has another bid besides us. We were told that our offer is higher, but the other family have more money for down payment. What does this mean?
Recently we make an offer in a house, our Realtor told us that the house has another bid besides us. We were told that our offer is higher, but the other family have more money for down payment. What does this mean?
I am confuse, any opinions are welcome.
I think it means that the seller has more confidence that the competing bidder will have less difficulty getting a mortgage thus more likely to close without a problem.
I think it means that the seller has more confidence that the competing bidder will have less difficulty getting a mortgage thus more likely to close without a problem.
Agreed, especially if the seller is in a rush to sell.
But we have been pre-approved for more than the amount we offered, although I don't know if our realtor has mention anything about that.
But usually the pre-approval letter is only based on the amount of money you told the mortgage company you have. At the time of pre-approval they don't verify that you actually have the sufficient funds.
I am a first time home buyer that will be using FHA loan.
You are at a big disadvantage if you are going FHA with 3% down compared with a buyer who is putting down 20% and using conventional financing. Most sellers will pick the bigger down payment because there is less chance of a mortgage problem with people who are putting down more money. Even if you bid more than the other party, the fact that they are a stronger buyer often causes a seller to choose them over you. Have your agent keep your offer on the table as a backup offer and hope the deal falls through for some reason. You have to hope to get lucky. In the mean time, you are going to have to find another house.
Another problem with FHA financing is that they are stricter with respect to the house. FHA appraisers often find items that need to be corrected before the deal can close. Those items usually end up having to be paid for by the seller. So most sellers would prefer to sell to a buyer who is not going FHA, all other things being equal.
Be patient, don't fall in love with any house. You will eventually find a house that is right for you. It may turn out to be this house. Good luck!
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
