Make sure your bid has a pre-approval letter attached.
Because sellers currently outnumber buyers in many neighborhoods, some purchasers see no point in bothering to obtain pre-approval for mortgage financing. But bargain-minded buyers know better, says Tom Early, a real estate broker and former president of the National Association of Exclusive Buyer Agents (www.naeba.org).
“In today’s market, you absolutely want pre-approval to remove all doubts in the seller’s mind that you’re qualified. Many homeowners think buyers can’t get loans now, and you have to prove them wrong to negotiate from strength,” Early says.
Granted, those with blotched credit or checkered employment situations now face a big challenge when seeking to secure home financing. But if you have a steady job, reasonably good credit and a minimum of debt, your odds of obtaining a mortgage pre-approval letter from a reputable lender are still very good, Early says.
By: Ellen James Martin, UNIVERSAL PRESS SYNDICATE
P.S. From Becky…A Loan Status Report (LSR) is required to submit an offer in Arizona. This acts as a pre-approval letter stating that you’ve had a conversation with a Mortgage Lender and have started the process for getting a loan. I advise my buying-clients to have an LSR ready before we go look at homes, in case you want to make an offer. I also advise my seller-clients to request an LSR accompany ALL offers, no exceptions, to ensure we deal only with well-qualified, serious buyers.
