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Pre-Approval

By
Real Estate Agent with Real Living HER

The first step in the home buying process is getting a pre-approval letter.  I can't stress this enough to my buyers the importance of this pre-approval letter.  Although it does not guarantee a final loan approval it dictates a lot of what can be done in the initial home search.

First the pre-approval letter tells if the buyer is even ready to purchase a home.  What I mean by this is there can be credit issues that need to be taken care of, excessive debt, as well as other things that may arise. 

Second the pre-approvallets the buyer as well as the agent know what price range to look for homes in.  You don't want to have the buyer looking at homes priced at $200,000 when in actuality all that they can afford is $100,000. 

A lot of buyers will say that they will wait until they find a home to get the pre-approval,  in some cases this is OK but I would not make a habit out of it.  There is nothing worse than taking a buyer out and finding them their dream home only to find out that they cant't get it.  It waste a lot of both you and the buyers time and the worst part is the clients disappointment.

So get pre-approvedbefore you actively go out and search for homes.  If you need help with this process pleasecontact Eddie Arnold with HER, I can point you in the right direction.

Show All Comments Sort:
Chris Owens
Gahanna, OH

I like how you stressed the importance of the pre approval letter.  I always tell my clients it's like going to see a home blind folded.

Nov 04, 2009 03:37 AM
John Pusa
Glendale, CA

Hi Addie,

Thank you for sharing an informative and helpful article.

John Pusa

Nov 04, 2009 03:40 AM
Larry Gray
Real Estate Consultant - Lakeland, FL

I like your post.  To me it shows the buyer is more serious about buying a home and not just looking at them if they make the effort to get pre-approved.

Nov 04, 2009 03:42 AM
Robin Dahlstrom
Re/Max Westside Properties - Marina del Rey, CA
CRS

I won't even show a home until I have their pre-approval in my file. No exceptions!!

Nov 04, 2009 03:46 AM
Sam Cooper
Howard Hanna Real Estate - Pickerington, OH
Sam Cooper Howard Hanna Real Estate

In addition, with the market being flooded with short sales, hud homes and bank owned properties, a buyer must have a pre approval letter accompany their offer. Timing is everything. A great deal is often snapped up right away to the buyer who sees and reacts first. The buyer who has their offer with a pre approval letter or  proof of funds is going to get the attention first. Most banks will even honor the first offer even if a second offer is more appealing. Good article Eddie. Best Wishes

Sam

Nov 07, 2009 12:16 AM