Do you want to stand out from the other offers?
Do you want to be able to compete with all-cash offers without spending thousands of dollars more than you have to?
Do you want to have an advantage over other buyers that costs you NOTHING but makes your offer appear to be more impressive than one that might be offering slightly more money?
If you answered yes (and I hope you did!), then going through the pre-approval process is the right move for you.
Let’s understand the difference between pre-qualified and pre-approved:
In this crazy and competitive real estate market, the surest way to success is through preparation. One way to do that is to spend the time BEFORE looking at houses to work with your lender to get completely through the underwriting process. In order to get to the point where your lender can say with 100% certainty that your loan is approved, you need to get the underwriter (or the man/woman behind the curtain) to do a complete analysis of your financial picture.
It can take weeks or even months to get that official approval from the underwriter. Most of my clients get the formal underwriting process started and THEN start looking at houses. Since it usually takes a few weeks or a few months to find the right house, by the time we are ready to put in an offer, the underwriter has time to review your file and is able to get us the magical “pre-approval letter”.
I can not stress to you enough how much having full approval for your lending can greatly increase your chances of beating out other offers. Very few buyers go through this process and when I am able to show the listing agent that you have taken the time and gotten the underwriters final seal of approval, your offer is instantly considered much stronger than others. Taking the time to get through the underwriting process costs you nothing and could win you everything.
Do the right thing. Set yourself up for success. Get your formal loan approval started NOW.