BIC TIP #1218: If You Do Not Use It, You Lose It

Writing an offer is not a solo sport. In this BIC TIP, Stephen Long, who is both a broker-in-charge and a mortgage loan officer, reminds buyer agents to build a good relationship with the lender and to check in before the offer goes out. One of the most common mistakes he sees is asking for too much seller concession, money the buyer simply cannot use.

Write the Offer With the Loan in Mind

Your offer has to work for the seller, but it also has to work for the mortgage. That starts with time. Depending on the loan program, a realistic closing timeline might be 30 days, or it might be 45. Pick a date the lender cannot meet, and you have built a problem into the contract from day one.

A quick call to the lender before you write can save a lot of extensions later.

Concessions You Cannot Use Are Gone

Seller concessions are closing costs the seller agrees to pay on the buyer’s behalf. They can be a great negotiating tool. But the lender can only apply as much as the buyer can actually use under the loan. If you ask for more than that, the excess does not magically turn into cash for the buyer. It simply gets lost.

That means you negotiated hard for money your buyer never receives, while you may have given something up to get it. That is leaving money on the table in the negotiation.

Make Sure the Property Fits the Loan

Stephen also reminds agents to confirm the property is conducive to the loan type. Some properties raise questions for certain programs. Your lender can flag those concerns before you are deep into due diligence, which is far better than discovering them after the appraisal.

The Practical Takeaway

Before you make an offer, touch base with the lender. Confirm the closing timeline fits the loan program, confirm the property works for the loan type, and ask for concessions at the right amount, not the biggest number you can think of. If you do not use it, you lose it.

This BIC Tip is general real estate education for licensees and consumers, not legal, tax, or financial advice. Rules and forms change, so verify current NCREC rules, MLS rules, and standard forms, and consult a North Carolina attorney or qualified professional about your specific situation. See Disclaimers & Disclosures.

Mortgage topics are discussed for general education only and are not a commitment to lend or an offer of credit. Stephen Long, NMLS #2795861, Keller Home Loans, a division of Mutual of Omaha Mortgage, Inc., NMLS ID 1025894. Equal Housing Opportunity.