Why is getting a pre-approval letter important?
By John Yonan / 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.