Minneapolis, MN: It is no secret that buying a house in today's market can be a challenge with the low inventory of homes for sale, and having to make multiple offers before successfully buying a home.
Falling in love with a home, and then having your offer rejected is no fun, and if you've been through a few rejections, definitely discouraging.
Here are a few thoughts to mentally stay in the game, and potential options to make your offer stronger. 
Remember, it's not really 'you' that is getting rejected. In a multiple offer game, especially these crazy 10, 15, 20+ offer homes, being the winner is tough, especially for first time home buyers with limited funds. Understanding the market and having realistic expectations helps.
With your agent, try to obtain feedback of why your offer was rejected. Somethings maybe you can change for the next offer that may help, some maybe not. For example, competing against a cash offer is always tough when you need to get a mortgage loan (like most of us).
Are you willing with other helpful items, for example willing to forgo an inspection? Or willing/able to cover any difference in cash between your offer price and the homes appraisal, if the appraisal is lower than the purchase price? Not everyone can, and not everyone should. But when multiple offers bid up a sale price, it is common the appraisal will fall short.
Having your existing home sold, so you can make a non-contingent offer is also helpful. Only around 30% of current home buyers are currently first time home buyers. The other 70% of people have a home. Most people need to sell it to qualify for the next one for two reasons. They can't qualify for two home payments, and their down payment money for the new home is profit from the sale of the old home. If you can qualify for both home, but lack downpayment, some people can get creative, like borrowing from your 401k to make a deal work, and pay if back when your existing home sells... But most people can't.
Talk to your Loan Officer about other loan options. Your Loan Officer will always put you in the correct loan from a financing stand point, but that loan may handicap you when making an offer. For example, while an FHA loan if a great loan, and there is nothing at all wrong with it, there is a perception with Real Estate Agents that it is sort of a second class offer. Switching to a conventional loan if possible, may improve your offer chances. The same with the awesome VA home loan. It is a fantastic loan, and a true benefit to our U.S. military personal, but agents, because of persistent misunderstanding
Finally, at the end of the day, understand that every single one of my clients, regardless of the number of unsuccessful offers along the way, have eventually found a perfect house they love, and you will too!
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If you’re ready to learn more about home financing options, our team at Cambria Mortgage is here to help! Connect with one of our trusted Mortgage Loan Officers today by calling (651) 552-3681 or visit JoeMetzler.com. We’re here for you!
Cambria Mortgage, the Joe Metzler team lends in Minnesota, Wisconsin, Iowa, North Dakota, and South Dakota only.
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Equal Housing Lender. NMLS 274132, 322798. We lend in the following states: MN, WI, SD, ND, IA, This is not an offer to lend or to extend credit, nor is this a guaranty of loan approval or commitment to lend. The information here may not be up-to-date and may no longer be accurate. Products and interest rates are subject to change at any time due to changing market conditions. Actual rates available to you may vary based upon a number of factors. Consumers must independently verify the accuracy and currency of available mortgage programs. All loan approvals are subject to the borrower(s) satisfying all underwriting guidelines and lo
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