Getting Your Offer Accepted! ~ Write an Offer with a Pre-Approval Letter from a Recognized Lender (Part 9 in a Series)
Denver Real Estate is Hot
Polishing up your offer with a pre approval letter from a recognized lender will get a gold star from the listing agent. Why? Because so many transactions fail to close because buyers have chosen a lender based on a TV/Radio ad touting awesome rates.
The reality is, a lender can promise you anything, what counts is how they deliver. Working with a lender that is local, someone you can meet in person, look into their eyes and know most likely they will deliver what they say is so important.
I joke how it's important to have someone local because you can be standing on their doorstep when they need a push to get things done. Local lenders like me build their business on delivering what they promise and being there to solve problems when necessary. Working with someone who comes highly recommended because of past successes eliminates cause for worrying about the unknown.
Choosing a lender can be a crap shoot. You never know if you made a wise decision until the very end. Asking for a trusted referral from a lender with a good track record is a wise course of action.
Pre-qualified is not the same as Pre-approved
Many buyers mistake pre-qualifed for pre-approved. There is a huge difference. A pre-qualified letter is merely the first step in getting a loan. Basically this qualification only checks the surface debt/income and makes an assumption the buyer has good credit and no skeletons in the closet (judgements/liens). With a pre-approval the lender makes investigations into the credit report and verifies the income/debts before they issue a pre-approval letter.
Pre-approval is just that. The buyer is approved pending the home they purchase. All that is needed is an inspection and appraisal in order to approve the loan.
Always go for the pre-approval letter. If you intend to purchase a home at some point in time, a pre-approval letter will be a strong negotiation point in your favor.
Don't be a riverboat gambler, go with a proven method when getting financing for your home.
Need a Buyer Broker?
If you are in the market for a good negotiator who will represent your best interests when searching for a home. Call me. I welcome your call!