“Be Prepared to Move Quickly” is the best advice a serious buyer can receive in this challenging real estate market.  The current market is extremely competitive because there are so many more buyers than there are sellers offering homes available for purchase.  So, yes, it is important to be fully pre-approved for mortgage loan financing and securing a pre-approval letter should be the first step of the buying process.  In fact, in today’s market, we find that many sellers expect submission of a pre-approval letter or proof of funds before even allowing a potential buyer to enter and preview their property.    

A pre-approval is a pre-qualification for a loan or mortgage in a certain value range.  During the process, a lender will verify and analyze your personal finances to provide a firm home-buying budget.  We recommend to our buyers that they contact two to three mortgage brokers to compare mortgage rates and terms to find the right program for their personal situation.  

Buyers need every possible advantage when submitting an offer to purchase (especially in a multiple offer scenario) and a written pre-approval shows the sellers you are a serious and qualified buyer with an accepted plan for financing.  A pre-approval letter can also give the buyer a better bargaining position and speed up the escrow process.

The pre-approval is also important because it gives you the parameters of a realistic price range as you look at homes to buy.  A pre-approval is the only way to know exactly how much you’re approved to borrow toward the purchase of a new home.   

Buyers need every advantage possible to be the winning bid in this challenging and competitive real estate market.  One of those advantages is having the best professional representation during your search and subsequent transaction.  An experienced Lewith & Freeman Realtor® has the information and expertise to provide guidance and assist you in securing the home that meets your needs in the price range that fits your budget.