How Waiting to Get Pre-Approved Costs Buyers Time, Money and Homes

How Waiting to Get Pre-Approved Costs Buyers Time, Money and Homes

by Michelle Carr Crowe, selling Homes in Cupertino, Calif. schools

How many times have you heard a buyer say, "I want to wait to get my pre-approval letter." When pressed for a reason, I've heard:

1) It only takes me an hour to get one

2) I can do it anytime when needed

3) I don't want to go thru the trouble of getting a new one if it expires

In other words, many buyers assume getting pre-approved either costs them time now, or will cost them time again for a renewal.

But buyers fail to grasp what waiting and procrastinating on the pre-approval letter can cost them in time, money and even homes.

Waiting to get pre-approved can cost a Buyer in the following ways:

1) The buyer may get rejected out of hand, REGARDLESS of the offer price. Most sellers expect a pre-approval letter with the offer package; if you don't have one they may "set aside" (e.g. even possibly throw out) your offer even if you've met all of the other requirements. That means it cost the buyer and agent time writing an incomplete offer.

2) The buyer may lose out in a competitive bid situation; someone who is fully prepared with a pre-approval letter may beat you EVEN if your offer price is higher. That means the buyer's unpreparedness cost the buyer money-especially if the next house they bid on is priced higher and/or the market is trending up as it is in Saratoga, West San Jose and Cupertino, Calif.

3) The buyer may not even get a chance to write or present an offer. Strong Silicon Valley, Calif. listing agents like me expect buyers to be fully prepared; we have a checklist of qualifications required for consideration. (correct forms, preferred terms, signed disclosure package and a pre-approval letter by a direct lender, etc.) If you are missing that pre-approval, the agent may tell you it needs to be in and complete by the offer deadline-or you are out. That means it cost the buyer the home - or any chance of owning the home.

Buying a home in San Jose, Calif. with Cupertino, Calif. schools is like preparing for and applying to college. High SAT scores and a winning essay are needed but you have to prove you've done your homework (Great grades are expected). Failing to provide your pre-approval letter tells a listing agent, "I'm not prepared" or worse, "I don't care enough to be prepared." So why wait to get pre-approved?

Buying a home in Saratoga, Calif. with Cupertino, Calif. schools is also like preparing for big cross-country driving vacation.  While a person might say, "I'll wait and just get gas on the way" there's a lot of risk with that approach, not the least of which is being stranded and unable to comoplete the journey.

Failing to plan for home ownership by  getting a pre-approval letter prior to writing an offer can cost a buyer in time, money and opportunities to ever own a home.

When that great Silicon Valley dream home for sale comes on the market, a Buyer needs to be fully prepared to act fast to actually get the house. A pre-approval letter from a direct lender saves a buyer time and money during the journey, and can be key to owning that Silicon Valley dream home.

Aloha & God bless you,

Michelle

Michelle Carr Crowe Real Estate Agent Keller Williams Cupertino	P: 408-252-8900 F: 408-850-6911 E: GetResultsTeam@gmail.com	20230 Stevens Creek, #E Cupertino, CA 95014 www.MichelleJudyCarr.com

Michelle C. Carr-Crowe, DRE #00901962, and the Get RE$ult$ Team (established by the late Judy Carr) are known as the "Lynbrook and Cupertino Schools Experts." Michelle is a creative catalyst for positive change in people's lives.She is a Silicon Valley-based multi-million dollar real estate consultant who works by referral only.

Her designations include: Accredited Buyers Representative (ABR), Accredited Consultant of Real Estate (ACRE), Accredited Luxury Home Specialist (ALHS), Accredited Staging Professional (ASP), Certified Distressed Property Expert (CDPE),  Property Marketing Expert (PME), Real Estate CyberSpace Specialist (RECS), and Senior Real Estate Specialist (SRES). In addition, she is an internationally-published freelance writer with over 1,000 traditional articles in print and online, as well as over 62,000 blog posts on Blogger, ActiveRain, MySpace, FaceBook, Realtor.com, Trulia, RealBird and others. She enjoys reading, traveling, animals, dancing, staging and praying. Check out her blog at www.activerain.com/results or visit her online at www.michellejudycarr.com or www.lynbrookhighhomes.com. For RE$ult$ ... Just Call ... (408) 252-8900.