Putting a larger deposit down with your offer and on your mortgage exhibits the weight and intention of your offer to sellers. The more risk you are willing to incur, the better position you will be in to have your offer accepted.
There are additional benefits that come with putting more money down on a mortgage deposit. These benefits include: lower mortgage rates, smaller mortgage loan balance, reduced mortgage insurance premiums, and more manageable monthly payments.
What is an inspection contingency? - An inspection contingency is a standard part of typical Offer to Purchase real estate in MA. If a home inspection turns up deal-killing problems, the inspection contingency gives you the right to back out and recover your offer deposit. In other words, the inspection contingency gives you the opportunity to verify the condition of the house or condo before you sign a Purchase and Sale Agreement and are required to put substantial down payment money on the line. When you waive the inspection contingency you are agreeing to accept the property in “as is” condition, although you may still conduct an inspection for informational purposes only.
How could waiving the inspection help my case?** - Sellers may look more favorably on an offer that waives a home inspection versus one that doesn’t – even if that opposing offer includes a higher sale price. To win favor with the seller, the buyer is willing to risk the possibility that the home may require repairs.
**Make sure you have the financial means to play this game. In a competitive market, waiving the home inspection contingency is an automatic if you are a well-funded buyer. If you aren’t, you may either request to conduct a pre-offer inspection (if there is time) to make sure you are minimizing the risk of waiving the inspection contingency with your offer, or consult with your agent on the condition of the home and determine if it is worth the risk to waive inspection.
**Pay for a professional home inspection before you sign the P&S. Waiving the inspection contingency doesn’t prevent you from having a home inspection. It just means you won’t be able to use results from an inspection to negotiate remedies or price with the seller.
What is a mortgage contingency? - A mortgage contingency clause is a common buyer protection. You and your agent usually indicate that you will get a commitment to financing within a stated period of time. If you cannot do so, you can typically get your earnest money deposit back. That is how the contingency clause helps you.
How could waiving the mortgage ctg. help my case? - Waiving the opportunity to have a mortgage contingency may not make sense to you financially. However, anything you can do to remove possible restrictions to the seller will make your offer more attractive, effectively increasing your chances of having your offer accepted over others in a competitive market. In a seller's market where the homeowner has multiple parties interested in the property and multiple offers, he/she will likely not accept a contract with a mortgage contingency if there are other offers in play without one.