Pre-approval Letter - How To Use It To Get Your Dream Home
By Raynor James, Fri Dec 9th
When house hunting, many buyers make the mistake of waiting tocontact a lender until after they have located their dream home.As a buyer, you will be in a much stronger position with aseller if you are pre-approved.
Pre-Approval Letter
To effectively house hunt, you must know the amount you canborrow from a lender. There is nothing worse than find yourdream home, but failing to qualify for the amount you need for aloan. Avoid this by asking your lender to pull your creditinformation and to let you know what needs to be done to get apre-approval letter. If you are going to have problems
Missoula, Montana Flat Fee MLS
Residents of Western Montana aggressively look for cost-savings in the sale of their homes. Because of the obvious appeal of the area, the presence of the University of Montana, thriving arts and cultural scene and dramatic scenery, the Garden City has been growing for some time. Putting aside the national credit market meltdown which began in 2007, Missoula real estate seemed to be for some time selling itself, and the steep fees associated with selling it did not seem to make sense for many sellers.
How Home Sellers Avoid the Credit Crunch
Our country faces an urgent housing financial crisis that is affecting the health of our entire economy and one that is fueling an impending recession. This situation has been compounded by the continued problems working families face in obtaining affordable and decent housing.
withgetting a loan, it is better to know about it as early aspossible.
Sometimes buyers resist contacting lenders because it's not theenjoyable part of home buying and they're afraid an extra creditcheck will reduce their credit score. This resistance is pennywise and pound foolish. Buyers who get their loan arrangementslined up at the beginning of the house buying process are reallydoing themselves a favor.
Much of the country is experiencing a hot, sellers' market. Itis not unusual for a seller to get more than one offer on thesame day. If that happens to you, your pre-approved status cangive you an edge over the competition. In fact, it can make aseller choose you over another bidder.
Presenting Your Letter to a Seller
When you tell the seller you want to buy their property, givethem a copy of your pre-approval letter. They will probablyrecognize the value of the letter, but don't depend on thisassumption. Make sure the seller realizes the loan is alreadyapproved.
As you give the seller the letter, explain to them that you areserious about making the transaction go smoothly and, for thatreason, you have already been through most of the loanapplication process. Point out that the lender has pulled yourcredit info and you've provided copies of W-2s, pay stubs, andall the other things the lender needed to decide that you doqualify for a loan. Tell the seller that the only remainingthing to do is to give the lender a copy of the contract thatyou and the seller sign, and the property needs to appraise foran appropriate amount.
Taking this approach puts you in a very strong position. Theseller knows you are not just wishing; you are capable of buyinghis property. One of a seller's worst nightmares is signing acontract with someone, taking his property off the market,wasting time and then finding out that the would-be buyer cannotget a loan. On the other hand, you and your pre-approval letterare dreams come true.
Put on your shining armor and get pre-approved by a lender. Onceyou have the letter in hand, get out there and find your dreamhome.
About the author:Raynor James is with http://www.fsboamerica.org - providing FSBOhomes For Sale By Owner. Visit our "sell my home" page athttp://www.fsboamerica.org/seller.cfm to list and sell your homefor free for one month. Visithttp://www.fsboamerica.org/buyer.cfm to see homes for sale byowner.
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