Why I Ask You for a Pre-Approval Letter

By
Real Estate Agent with Realty Executives Integrity R.E. Broker 55289-90

preapproval letterWith the spring market upon us, buyers are calling and emailing that they are interested in seeing "this house I found on the internet."

After determining that they are not already working with another agent, I ask if they've talked with a lender about getting a pre-approval letter. Too often, that question is answered with, "No, but we just want to see this house."

Here's why getting that pre-approval letter needs to be done before looking at any house:

1. It will tell you how much house you can comfortably afford. One of the worst things that can happen during your home search is to find out you don't qualify financially for the house you just saw and fell in love with.

2. It will tell you which loan program is the best fit for you and your current circumstances. How much do you have available for a down payment? How much will closing costs be? Which loan option offers the best percentage rate for you? Meet with a trusted lender who can help you navigate through all the financial questions.  

3. It will put you in a much stronger position when it comes time to write an offer. Sellers want to know that any offer they receive is being submitted by a serious buyer -- someone who is ready, willing and able to buy their home. Including a pre-approval letter with the offer is one of the best ways to prove that.

4. It allows you and me to use our time most efficiently. Your time is precious, and so is mine. Let's use it the best way possible by focusing on those homes that meet what you are looking for as far as location, number of bedrooms and baths, and most importantly price.

Help put yourself in the best  position possible both with your real estate agent and the seller. Meet with your lender and get that preapproval letter before beginning that home search.

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Michael Dagner 06/01/2015 02:36 PM
Topic:
ActiveRain Community
Groups:
Realtors®
The Lounge at Active Rain
Wisconsin Active Rainers
Tags:
buying a house
applying for a mortgage
preapproval letter

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Rainmaker
1,058,012
Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

Peggy, it's also difficult for buyers to see homes in a price range they cannot afford and then look at homes in their price range.

May 07, 2015 05:31 AM #1
Rainer
106,803
Rob Marken
Bend River Realty - Bend, OR
25+ years experience in Bend

Great points on why it is important to have a preapproval letter. It really helps a buyer narrow down their price when searching. Thanks for sharing. 

May 07, 2015 08:44 AM #2
Rainmaker
683,156
Michael Dagner
Brokers Guild Classic - Denver, CO
Your Denver Homes Realty Expert

Hi Peggy, simple and straightforward.  This smart approach benefits everyone in the process.

May 07, 2015 09:17 AM #3
Rainmaker
207,960
Peggy Wester
Realty Executives Integrity - Grafton, WI
Real Estate Agent Ozaukee & Washington County

Sharon -- Yes, it's no fun when they fall in love with something and then findn out they can't afford it.

Rob -- I really think it's the best thing they can do for themselves during the entire process.

Michael -- I couldn't agree with you more. :)

May 08, 2015 12:06 AM #4
Rainmaker
3,542,660
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Peggy. I like this very much. You have done a great job here.

Jun 02, 2015 01:26 AM #5
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Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

Haven't seen you at AR in a while, was just stopping by to say hi and hope you are well. 

Aug 03, 2015 11:32 AM #6
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Rainmaker
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Peggy Wester

Real Estate Agent Ozaukee & Washington County
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