There can be several factors determining the likely acceptance of your offer with 5% down. If it is a multiple offer situation and someone offering cashing, it is less likely that you will be selected. You still could be if you are going to be owner occupied and the other person is an investor. It also depends on the other variables and how "strong" your offer is compared to the other offer(s). Price offered, closing time, earnest money are some of the other factors they also consider.
If you have any questions you would like me to specifically answer, feel free to contact me at jolichwier@PatrickJeffreyRealty.com
Congratulations on your preapproval! Sellers, whether a Bank or an individual, will always consider a preapproved buyer over one who has yet to get her financial matters in order.
Your chances are as good as any. A use of a Buyers Agent will provide you an advocate that will go to work to help you achieve your goal.
If you have not yet selected an Agent you may call me at 224-805-2616. Together we'll discuss the right approach as we find out as much information on the property you selected.
Most bank owned properties receive multiple offers, and the bank will generally look to take not necessarily the highest offer, but the one that looks like it has the strongest chance of closing (preferably in the shortest amount of time). Thus, many of them end up going to cash buyers who can close quickly.
If your debt-to-income ratio is strong, you may be able to purchase a Fannie Mae or Freddie Mac-owned property for as little as 3.5% down -- your offer will still need to be strong if the unit is priced well. Your Realtor should be able to keep a close eye on the opportunities for you, and you should be prepared to act quickly in a very competitive market.
They prefer CASH for this exact reason; but they look at other things:
Using a Realtor is usually a requirement for this exact reason.
They will look at the financing as well as the Lender you are using; which is why it helps to get the loan through the original Bank.
Please get a Buyer's Agent and follow their advice.
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