Buyer Tip: Obtain A Pre-Approval Letter
If you want to acquire residential property in Pinellas County right now, you're in luck. Your chances of locating that "just right" piece of real estate have increased by almost 270% over your chances of a year ago. That's because in March, 2005 there were only 4,633 residential properties on the market in Pinellas County. Today, that number has increased to 12,503.
Buyers are now in a much better position to find their dream house or condo simply because there are more properties from which to select. Once you've found you're place in the sun, however, you still have to make an acceptable offer to the seller. Sellers want two things: an acceptable amount of money, and a buyer who has the financial capability to complete the transaction.
As a buyer, it's up to you to convince the seller that you have the financial ability to "do the deal" as they say. The best way to demonstrate this proof is to attach a letter of pre-approval from your mortgage company to your written purchase offer. That letter tells the seller that you are a serious buyer and have the resources to complete the transaction.
I've seen cases in which multiple offers were made on properties, but the buyer presenting a letter of pre-approval was the one who got the property. In fact, it happened to a couple I represented recently on a condo sale on St. Pete Beach. They did not make the highest offer on the condo, but they had a letter of pre-approval. The other people didn't. My clients now live in the condo -- happily, I might add.
So, how do you get a letter of pre-approval? Simple. To become pre-approved, just visit your mortgage company and complete the application process before starting your property search. You must complete the application procedure anyway, so do it before you start looking at real estate. It's the smart thing to do.
That letter of pre-approval tells a seller you have actually been approved by the lender to make a purchase. This gives you a huge edge in the purchasing process because sellers realize they are negotiating with someone capable of completing the purchase.
Pre-approval letters. It's a great tip that will make you a more effective buyer.
Buyers are now in a much better position to find their dream house or condo simply because there are more properties from which to select. Once you've found you're place in the sun, however, you still have to make an acceptable offer to the seller. Sellers want two things: an acceptable amount of money, and a buyer who has the financial capability to complete the transaction.
As a buyer, it's up to you to convince the seller that you have the financial ability to "do the deal" as they say. The best way to demonstrate this proof is to attach a letter of pre-approval from your mortgage company to your written purchase offer. That letter tells the seller that you are a serious buyer and have the resources to complete the transaction.
I've seen cases in which multiple offers were made on properties, but the buyer presenting a letter of pre-approval was the one who got the property. In fact, it happened to a couple I represented recently on a condo sale on St. Pete Beach. They did not make the highest offer on the condo, but they had a letter of pre-approval. The other people didn't. My clients now live in the condo -- happily, I might add.
So, how do you get a letter of pre-approval? Simple. To become pre-approved, just visit your mortgage company and complete the application process before starting your property search. You must complete the application procedure anyway, so do it before you start looking at real estate. It's the smart thing to do.
That letter of pre-approval tells a seller you have actually been approved by the lender to make a purchase. This gives you a huge edge in the purchasing process because sellers realize they are negotiating with someone capable of completing the purchase.
Pre-approval letters. It's a great tip that will make you a more effective buyer.
-30-
posted by Terry Ward at 4:54 AM
0 Comments:
Post a Comment
<< Home