Home shopping could be one of the most exciting times of your life. Do you understand what being prepared to write a complete offer package means? In this article, we’re going to breakdown the correct way to present yourself to a seller and their real estate agent (the listing agent).
When you’re ready to pull the trigger and write an offer on the home of your dreams the first thing the listing agent or seller will ask for is your POFs for your down payment and a mortgage pre-approval letter. If you’re not prepared you’re better off walking away and not writing an offer. The listing agent and seller will not take your offer seriously.
Gathering the documents, letters, tax returns, proof of employment, paycheck stubs… ETC isn’t very fun. If you’re working with a talented and efficient mortgage broker or loan officer the process can be significantly less painful and stressful. Once you have a pre-approval letter in hand, you’ll have a clear picture of your home buying power, down payment options on various loan options and more. At the end of the day if you don’t get a pre-approval letter as a precursor to home shopping you may prevent yourself from finding the home that’s best for you both in terms of budget and features and benefits.
Here’s why it makes sense to get a mortgage pre-approval letter first
Most of my real estate clients start surfing the Internet on real estate websites and then plug in the purchase price and a payment they find from a loan calculator, before wandering into open houses in neighborhoods that they desire house styles they like, or good grading school districts. The problem with this strategy is you’re wasting your time and here’s why. If you don’t really know what you can afford you may be home shopping outside of your price range or below your price range and not targeting the correct home for you.
If you first speak with a mortgage broker or loan officer and become Pre-Approved you will have a clear picture of how many homes you can afford based on your financial situation. This will help you and your realtor identify, write a complete offer package, and open escrow on your dream home much faster.
Work with a professional Realtor
At the end of the day, I’m a Realtor who prefers to work with home buyers that have done the work of getting a pre-approval before we start the house hunting process. It’s not fair to my home buyer clients who have gotten pre-approved and are ready to go if I’m working with a client who isn’t ready to start writing complete offer packages or even worse really can’t afford to buy real estate. Does that make sense? Plus, how can I help you find the best property for you if we don’t know what you can really afford. If I don’t know what you can afford we’re throwing darts in the dark.
Higher Acceptance Rate for Buyers With A Pre-Approval Letter
Let’s say you find a real estate agent to work for you without you having a pre-approval. They’ll be busting their butt combing the MLS and off market properties and once you find the perfect home the next step will be you’re scrambling to get a mortgage loan. You may think you’re all set since you make plenty of money and the generic mortgage calculator says you can afford the home. Wrong! How do you get paid – 1099 or W2? How do you file your taxes? What about your outstanding debts like student loans or credit cards, vehicles? How is your credit score? Did you factor in a down payment? Are you getting a gift from a family member? These questions and much more go into determining a pre-approval. You may have just wasted countless hours, days, weeks, or months house hunting for the wrong property. Do yourself a favor and go through the pre-approval process before you walk through the first open house door.
A pre-approval letter will not only save time, energy, and money but will make the entire home buying process a lot less stressful for you and your Realtor. Period.
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This article, Why a Mortgage Pre-Approval is Necessary before you start Your Home Search, was provided by Glenn Shelhamer of The Shelhamer Real Estate Group. If you are selling your Los Feliz home, I have a comprehensive marketing plan, including preparing your Los Feliz home properly that will help get your home sold in less time and for more money. Call me at 310-913-9477 or contact me to discuss how I will get your home sold.
Original Source: LosFelizHouse.com