One to the most important steps in your search for perfect home or property is to get a pre-approval. Sure it is tempting to jump right into hunting for the perfect house or property ,but in the current Seller Market, It’s a really good idea to get a mortgage pre-approval before you begin comparing properties. Many Sellers may require it before entertaining an offer from you.
“Matt, I heard prequalification holds the same weight for a home mortgage and is easier to get.” A prequalification does not hold the same weight and it’s important to know how it differs from pre-approval. Here is a quick summary in the differences.
Prequalification letter: A prequalification is an estimate of the amount of home loan you can get. It’s based on an informal evaluation of your income and other information.
Pre-approval letter: A mortgage pre-approval is a document from a lender that tells you exactly how much loan money you can get. It’s based on your financial information, such as W-2s, bank statements and your credit score.
It’s always important to know what you are approved for and helps you become competitive in this current seller market where we may have to include an escalation offer. (It’s important to not offer than you can afford)
You and I (your Realtor) know what you can afford once you have a preapproval letter in hand. This is information that is between you, me, and your lender and part my loyalty to you.
I can’t reiterate enough that in the current market, Sellers need to know that the You (the buyer) they choose can afford their home. A pre-approval shows a seller that you have the money needed to purchase the home.
A preapproval generally means you are less likely to run into last-minute surprises or delays with your lender. You still have to do your part because even though you are pre-approved, between the time you obtain the pre-approval and show up to sign the papers for the closing of your home or property, you will want to make sure you don’t do anything lower your credit scores or debit to income ratio. A good example is taking on a new car loan.
“Matt you mentioned loyalty to me, what is that?“
Before you and I exchange any confidential information, we will go over a Real Estate Agency Disclosure Statement/ Form. I will explain to you my role, responsibilities, and duties to you as either your Buyer agent or Seller agent. Fiduciary duties, confidentiality, and loyalty to you are an extremely important aspect of our relationship.
As your Realtor and you as my (buyers or sellers) client, my Fiduciary Duties are part of a signed agreement in which the you(the client) puts your trust in me (your Realtor) to work with your best interests in mind. Unless required by law or if I have written permission from you, I will not release any confidential information you intrust in me.
I am a Realtor with Five Star Real Estate
(269) 491- 0161 or email@example.com
2750 Old Centre Rd # 140
Portage, MI 49024