In today's competitive housing market, buyers are always looking for little ways to help their home offers stand out to sellers. One method that may be useful for you here: Including a cover letter with your offer.
At Integrity First Lending, we've assisted numerous clients with obtaining a quality mortgage loan, plus with using their purchasing power to make compelling offers that will be noticeable to sellers. Why might you consider a cover letter in your home offer, and what are some important elements to consider if you're going this route? Here's a basic primer.
General Benefits of Cover Letters
Your cover letter can serve a few important benefits or purposes, including:
- Showing your commitment: When you include a cover letter, it presents to the seller that you and your offer are serious. It will also confirm that you are pre-approved for a loan for at least the amount you're offering, which sellers need to see to be confident in your offer.
- Offering information: The cover letter can be used to detail several details of your offer that aren't readily apparent in the rest of the paperwork -- such as when you're planning on closing or what earnest money amount will accompany your home offer (if applicable).
- Letting the seller know you're flexible: In many cases, sellers are looking for buyers who can be flexible in areas like inspection items or closing dates. That's why it may be useful to include your willingness to work with the seller in your cover letter.
What to Include in a Cover Letter
Here are the basic elements that should typically be included in a home offer cover letter:
- Basic offer details: While all the specifics of your offer will be contained within the written purchase agreement, you will need to include some basics like the price you're offering and your earnest money deposit amount.
- Your buyer qualifications: Your cover letter is an opportunity to provide the seller with important information on your financial situation. Specifically make sure to list down any loan pre-approvals or other pertinent loan details that they'll need in order to understand your situation.
- Your schedule details: When are you planning on closing? Will this be a cash purchase or will you need financing? If financing is involved, then what's the loan type and the loan amount that has been pre-approved for you by your lender? Your letter should include this information so that sellers can plan accordingly.
- Details that will help the seller buy into you being the buyer: Why are you buying this home? How long have you been researching it? What do you like about it? These types of details can give a seller a better feel for who you are and if your offer might be good.
- Personal note: In some cases, a personal note from the buyer to the seller can really help your offer stand out. In general, you'll probably want to include this near the end of your letter, which could be a paragraph or two in length.
For more on why and how to craft a cover letter for your home offer, or to learn about any of our mortgage rates or quality home loan programs, speak to the pros at Integrity First Lending today.
