Become a Preferred Buyer

By
Real Estate Agent with RE/MAX Gold DRE# 01437147

Become a Preferred Buyer

When you begin house-hunting in Lodi and Stockton, CA areas, it will help you narrow down the homes that you consider if you know how much you can afford to pay. You can do that by getting pre-qualified, or you can take the process one step further by getting pre-approved.

Many people get confused by these terms and think they mean the same thing, when actually they are quite different. Being pre-qualified doesn't mean that you have a commitment from a lender; it's merely an indication of how much home you can afford. The pre-approval process, on the other hand, is more in depth. Being pre-qualified means a lender has evaluated your income, monthly debt, employment and available down payment to determine the best loan for you and the amount for which you would likely qualify.

When you are pre-approved, you actually have a lender's written commitment mortgage approved to grant a loan once certain conditions have been met. For example, you will have to obtain a purchase contract to receive the money, as well as a satisfactory appraisal and a clear title report.

You can get pre-approved even before you begin the house-hunting process. In some cases, the mortgage broker will honor the commitment for up to three months.

Sellers will likely view you as a preferred buyer if you are pre-approved because they won't have to wonder if you will be able to obtain financing. If a seller receives an offer from you with pre-approval and one from a buyer who does not have financing, your offer is likely to get stronger consideration.

Call me if you have more questions. I would be happy to clarify the home buying and selling process and help with all any of your real estate needs.

Comments (5)

Steve Ewing - Keller Williams Realty
Keller Williams - Stockton, CA

Randy - Thanks for the post.  Seems people do not understand how important preapproval is in this market.  Buyer's need to be ready to go when they find that "perfect" property.

Nov 02, 2012 08:26 AM
Randy Elliott
RE/MAX Gold - Lodi, CA
REALTOR : Lodi / Stockton, CA

Exactly, Steve! You gotta do the 'thing' before you do the 'thing'.  Thanks for your comment!

Nov 02, 2012 09:08 AM
Connie Harvey
Pilkerton Realtors - Brentwood, TN
Realtor - Nashville TN Real Estate

Randy, being pre-approved makes a world of difference. Now that we're seeing multiple offers again, it can make the difference in getting a house or not!

Jan 06, 2013 03:52 AM
Randy Elliott
RE/MAX Gold - Lodi, CA
REALTOR : Lodi / Stockton, CA

I couldn't agree more, Connie!  Multiple offer these days mean buyers have to be ready to act immediately on the homes they are interested in.

Jan 06, 2013 07:27 AM
Wayne Zuhl
Remax First Realty II - Cranford, NJ
The Last Name You'll Ever Need in Real Estate

Good morning Randy - the people of Lodi and Stockton are lucky to have an expert like you to help guide them through the waters of home buying!

Jan 21, 2013 07:27 PM

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