| ext">When house hunting, many buyers make | | | | Presenting Your Letter to a Seller |
| the mistake of waiting to contact a lender until | | | | When you tell the seller you want to buy their |
| after they have located their dream home. As a | | | | property, give them a copy of your pre-approval |
| buyer, you will be in a much stronger position with | | | | letter. They will probably recognize the value of |
| a seller if you are pre-approved. | | | | the letter, but don’t depend on this |
| Pre-Approval Letter | | | | assumption. Make sure the seller realizes the loan |
| To effectively house hunt, you must know the | | | | is already approved. |
| amount you can borrow from a lender. There is | | | | As you give the seller the letter, explain to them |
| nothing worse than find your dream home, but | | | | that you are serious about making the transaction |
| failing to qualify for the amount you need for a | | | | go smoothly and, for that reason, you have |
| loan. Avoid this by asking your lender to pull your | | | | already been through most of the loan application |
| credit information and to let you know what | | | | process. Point out that the lender has pulled your |
| needs to be done to get a pre-approval letter. If | | | | credit info and you’ve provided copies of |
| you are going to have problems with getting a | | | | W-2s, pay stubs, and all the other things the |
| loan, it is better to know about it as early as | | | | lender needed to decide that you do qualify for a |
| possible. | | | | loan. Tell the seller that the only remaining thing to |
| Sometimes buyers resist contacting lenders | | | | do is to give the lender a copy of the contract |
| because it’s not the enjoyable part of | | | | that you and the seller sign, and the property |
| home buying and they’re afraid an extra | | | | needs to appraise for an appropriate amount. |
| credit check will reduce their credit score. This | | | | Taking this approach puts you in a very strong |
| resistance is penny wise and pound foolish. Buyers | | | | position. The seller knows you are not just |
| who get their loan arrangements lined up at the | | | | wishing; you are capable of buying his property. |
| beginning of the house buying process are really | | | | One of a seller’s worst nightmares is |
| doing themselves a favor. | | | | signing a contract with someone, taking his |
| Much of the country is experiencing a hot, | | | | property off the market, wasting time and then |
| sellers’ market. It is not unusual for a seller | | | | finding out that the would-be buyer cannot get a |
| to get more than one offer on the same day. If | | | | loan. On the other hand, you and your |
| that happens to you, your pre-approved status | | | | pre-approval letter are dreams come true. |
| can give you an edge over the competition. In | | | | Put on your shining armor and get pre-approved |
| fact, it can make a seller choose you over | | | | by a lender. |
| another bidder. | | | | |