The Rejection-

 

I recently ran across a client who was pre qualified for a mortgage
and the 1st home that she placed her offer with--got rejected.

 That rejection made her decline the opportunity to become a home buyer. She
settled into thinking  that home ownership wasn't in her favor and
that she would rather stay a renter. She reached out to me after her ordeal. She called with the intentions of
only getting a rental which was priced for $1400 monthly. I later
found out all the details in relation to her previous efforts towards
home ownership and rejection- I encouraged her to pursue homeownership
once more.

After all, in the long run- home ownership far outweighs renters in
many, many ways. So because of that one case I ran across, I wondered
how many other individuals were ill prepared or not forewarned in
advance to handle the rejection part of the process.

In keeping up with the fact that your offer may get rejected- I
decided to section off an article in relation to that for this buyer's
guide to home ownership. I am sharing so that
future clients can gain insight and not give up on their goals of
home ownership. Let me help you build tougher skin regarding this
whole process.

The rejection of offer is not a negative indication on the buyer at
all. The rejection should not take hits away from your self esteem, in
fact, the rejection has nothing to do with you personally at all.

Here are some common reasons for a rejection of an offer

*A cash buyer has presented themselves
(Normally, homes priced above $100 thousand have fewer cash offers but it
could still could happen)

*A potential buyer offered more money or had a higher loan amount than you

*A potential buyer had a conventional loan
(More times than not, a conventional loan will sway the seller more
than a FHA qualified loan)
Why is that you may ask?-- Well, a conventional loan carries a bit
more weight than that of a FHA loan- only because the seller will not
be required to make as many or in some circumstances any maintenance
repairs or adjustments. There is also less scrutiny with conventional
loans. If you currently have a FHA loan, do not despair because
FHA also wins plenty of homes and bidding wars as well. Whoever places a worthy
contract in 1st wins !

*The location that you seek could be in the process of recent
developments or revitalizations. 

(The location could be highly popular or favorable. The location could have plenty of amenities nearby. Some examples could be: near a
shopping center, near the expressway, near a particular school, closer to
downtown areas, and less commute time. The variables will always be overflowing and changing.)

*A personal family member , friend or acquaintance could have placed
an offer. (Remember, it is ultimately the seller's decision on who they
chose to accept or reject.)

*A person was willing to place more money down to limit complete reliance
on their loan

*In this market, I even witnessed where some applicants were waiving
their right to an inspection. (This is definitely not recommended "AT
ALL", but all things being negotiable- the potential buyer has that
right and the final call even with stern instructions and warnings
from your realtor.)

Now let me tell you about my process, that I use to combat the effects of
rejection. I place offers in fast and my goal is to place them in as
soon as we view or see a home of interest. I write into contract
for the agent to give us a final answer by 2- 3 days. That gives our seller and
their agent less time for other buyers to bombard him with offers.

Also, Three days is not enough time for my potential clients to gain that much
of an attachment to a particular home. The third reason is because
within 2 to 5 days another home will also be available on the market--
one that could have an extra bedroom, extra bathroom, finished
basement, bigger yard, newer private deck, garage space, parking
space, and not to mention---it could very well have a few of those
amenities that I shared with you earlier as well.

So, I hoped I helped gear your focus and expectations so that you can 
avoid the blues when it comes to rejections.

 After-all- there is always
another home and that next one could be wayyyy better and cheaper!!!