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Why is getting a pre-approval letter important?

By   /   On March 4, 2017

Are you kidding me?  Does anyone really need to ask this question anymore?

As a matter of fact, they better.  More and more sellers and their listing agents are demanding that offers be accompanied with a pre-approval letter.

Home shopping is a fun and pleasant experience.  However, serious buyers need to start the process in a lender’s office, not an open house. This not only entails getting loan qualified, which is a process that determines whether the borrower qualifies for a loan from an income and credit worthiness perspective, but more importantly, includes receiving the essential loan pre-approval letter… for several good reasons.

  • First and foremost, in today’s real estate market, most sellers expect buyers have a pre-approval letter, and may only negotiate with people who have proof that they can obtain financing.
  • Second, via the pre-approval process, would-be homeowners have a complete understanding and assurance of the amount they can borrow and home they can readily purchase.
  • Finally, if there is any problem with their credit, they’ll get a heads-up and take action to fix it.

Let’s face it. Buyers need to know before they make an offer that they can actually afford the home of their dreams.