A Mortgage Pre-Approval Can Help You In Your Home Purchase Negotiations

Reblogger Gabe Sanders
Real Estate Agent with Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales 3090099

For those getting ready to start the search to buy a home, this is your first step:

 

Original content by Diane Beaumont NMLS# 247026

A Mortgage Pre-Approval Can Help You In Your Home Purchase NegotiationsA mortgage pre-qualification is an initial estimate of what type and size of mortgage a borrower could get. It is limited, though, because it's only based on what the borrower tells the lender, which might not be the same as what the lender finds out when it goes through a full process of analyzing the borrower and his credit.

The Initial Loan Pre-Qualification

To get pre-qualified, a borrower starts by finding a lender. Typically, he will give the lender basic information on his ability to borrow. This includes his income, how much money he has in the bank, his current payments and an estimate of his credit worthiness.

The lender takes the pre-qualification information that he gets and compares it to the loan programs of which he is aware. For instance, if he knows that a borrower doesn't have a lot to put down, but the borrower mentions that he's active-duty military, the mortgage lender might offer a VA loan as an option.

Based on the programs he sees and the information the mortgage professional gets from the borrower, he will tell the borrower what kind of mortgage to expect.Typically, this gives the borrower a sense of the likely interest rate and of the loan amount he can borrow. Generally, this is enough to let a borrower start looking at real estate listings with a realistic sense of what will be affordable.

The Power of A Mortgage Pre-Approval

When it comes time to start writing offers, though, a mortgage pre-qualification might not be enough. A pre-qualification is missing one important factor -- underwriting the borrower's income and credit.

When a borrower goes beyond a pre-qualification to get a mortgage pre-approval, he submits his credit for the lender to check. That way, his qualifications get confirmed and the lender can issue a more binding letter that not only lets him know what he can afford but also lets him show a seller that he is truly qualified to get a loan.

With that letter, his offer may be viewed as stronger and he can be more likely to get the ability to buy the house he wants.  Contact us today to discuss your options before looking at homes.  It may very likely give you a bit more purchasing leverage.

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Rainmaker
3,912,513
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Thank you for reblogging the post. I missed reading the original one 

Apr 16, 2018 03:13 AM #1
Rainmaker
4,500,593
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

Thank you very much, Gabe, for sharing this excellent reblog selection.

Apr 16, 2018 04:21 AM #2
Rainmaker
2,705,884
Sally K. & David L. Hanson
Keller Williams 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce - Short Sale

We require a pre approval for all our listngs...and before a Buyer tours homes...the best surprise is none at all financially speaking !

Apr 16, 2018 04:24 AM #3
Rainmaker
3,357,353
Dorie Dillard
Coldwell Banker United Realtors® ~ 512.346.1799 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good morning Gabe Sanders,

Another great choice to re-blogg! Pre-approval is what one needs. I just found a perfect home for my buyers and they had a pre-qualification letter and I told them this didn't cut it. Fill out the app and get a pre-approval! They did it that day so I had it when I submitted the offer! We secured the house before it hit the market!

Apr 16, 2018 05:10 AM #4
Rainmaker
1,136,490
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Excellent choice for a re-blog, Gabe Sanders.  The more often agents reaffirm the wisdom and advice regarding the value of seeking a Pre-Approval, the better.  No matter how many times a LO provides this advice, it can seem a bit self-serving to buyers.  Agents confirmation and suggestion to pursue a Pre-Approval lends real weight for doing this ... strong credibility.  It's why I'm always very greatful to see agents sharing this info, such as you do here ...  and sharing it with their clients.  Thank you ...

Gene

Apr 16, 2018 08:57 AM #5
Ambassador
1,710,144
Michelle Carr-Crowe-Top 1% Diamond Certified Real Estate Team Sells Cupertino San Jose Homes-Just Call 408-252-8900
Get Results Team...Just Call (408) 252-8900! - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

In Silicon Valley, sellers require a pre-approval letter with any offer.

Apr 16, 2018 03:04 PM #6
Rainmaker
2,543,048
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Thank you for the information I’m sure people want to know how to be qualified properly for all the stuff necessary.

Apr 17, 2018 11:55 PM #7
Rainmaker
2,543,048
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

I’m glad that preapproval exists in certain cases like Michelle’s cases themselves. That makes sense. Michelle Carr-Crowe-Top 1% Diamond Certified Real Estate Team Sells Cupertino San Jose Homes-Just Call 408-252-8900

Apr 17, 2018 11:56 PM #8
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Gabe Sanders

Stuart Florida Real Estate
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