Why Do I need to be Pre-Approved before you start showing me homes?
This guestion is asked all the time in this market. Buyers think that if they can afford to pay rent and they have a job, this being a buyer's market must mean they can buy.
Why Do I need to be Pre-Approved before you start showing me homes?
There are many first time buyers out there who have asked me this question. I constantly have to educate them about this question. My answer is very clear to the buyers:
•1. The issue is I want them to be sure, that they are in a position to 'buy' the particular home they found and like.
•2. I want to be sure that they are searching in the price point they can actually buy.
•3. I do not want them to miss out on a home they loved, but were unable to get because they did not have the Pre-Approval Letter to submit with their offer.
•4. Then my own selfish reason: I do not want to waste my time and gas with lookers who cannot qualify to buy anything due to bad credit or the bank's more restrictive underwriting rules.
•5. Sellers and their agents do not want to accept offers from potential buyers who are not in a position to buy; hence they might miss out on a Ready & Able buyer. They will not accept an offer without Pre-Approval from a reputable lending institution.
These are the most pertinent reasons why I expect a pre-approval letter from a buyer. If they do not have this, I always encourage them to do this and if they need a reputable lender I refer them to one.
In the mean time I set up a search program in the Multiple Listing Service a bit higher and a bit lower in what they think is their price point; hence they can get a feel for what the market is like. How is the inventory? What they can get for the various price ranges as well as the difference between certain neighborhoods? Ultimately once the Pre-Approval is done they are better educated on the inventory and when a property comes in their price & liking we can see it and submit a solid & strong offer.
If you are a consumer who is considering buying or selling a home, investment real estate, vacation homes, or beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Culver City, Marina Del Rey, Venice or Malibu. Feel Free to give me a call at 310.486.1002 (USA) or email me at homes@endrebarath.com or visit one of my websites at http://www.endrebarath.com Your Pet Friendly Realtor. I contribute a portion of my commission to Local Animal Rescue Organizations
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