Mother & Daughter Blog: Pre-APPROVED or Don't Offer!

  The buying process, can be something like trying to jump from step to step and missing a step a- you fall down!  It takes time to get up and start over. Missing steps can cause delays.  Time is money and delays can result in lost of money.  There is a lot of details to escrow that will have you feeling like the deal is not going to survive the delays.  Some of the situations are like little hills you can jump over, but if your buyer falls out of grace with the lender you have had it.  And although this could happen due to conditions not being met, but wouldn't it be a shame if the buyer was never pre-approved to get the loan in the first place? How would you explain that to your seller? Don't jump over the first step of a buyer house hunting process.                                                                                                                                 

Instead of getting all excited about the offer you have coming over the fax, make sure you get that most important piece of paperwork with your offer - at least get it or prior to submitting the offer to the seller - a letter that verifies that your potential buyer is Pre-APPROVED, not just prequalified!  It could be the factor to make or break your deal.  Not only during the reviewing of the offer, but all during the escrow process.

If you enjoy sweating for something that could have been solved at the beginning of the process then go ahead and take those offers without having any idea of what the buyer is worth, what their credit is saying about all this and I can almost assure you --- you will fall off the escrow process steps a few times and may even get ready to give up -- especially with the houseing and lending markets as they are.

There are stories out there of the borrower never getting the loan because there were never really approved. THey never should have made the offer!  The loan officer did some eye balling and made some promises, but when he got the shovel and starting to dig --- he found out that the ground breaking needed a drill instead of shovel to cut down pass the hard rocks of credit issues, liens, unmeetable conditions, etc.

So please! Make sure your potential buyer is pre-APPROVED and that is presented right at the time of  the offer.  Especially on Short Sales.  Lenders tend to get very upset if they agree to a short sale and then have escrow fall because this all too important step was missed.

Ready to buy? WAIT! WAIT, you forgot one important step here. Before you go making an offer on your dream home, make sure you have followed this one highly important step:Find out by going to a loan officer and seeing what you qualify for and if you are really serious get pre-Approved prior to making an offer.  If you do not know a loan officer, tell your realtor.

      Get Pre-approved for a Mortgage (not just qualified, but approved) here's why:

Agents should educate their buyers and sellers about how important being pre-approved is to a successful purchase.            I know some agents that will not take an offer without this approval and I have learned to do the same. The added value to your relationship with your seller is that is shows the seller that you are serious about getting serious buyers, instead of being over anxious and eager to leave out steps and not taking time to secure the offers presented to them.

A suggestion from another agent was to put it right on the MLS comments --- only serious, approved buyer offers will be considered.  This is not a bad suggestion. 

Unless you want to keep falling out of escrow, sleepless nights -- make sure you communicate to the potential buyers that they will need to present an offer that is accomplished with a Pre-APPROVED letter, so you and seller will not have a escrow full of surprises.  Turn your FOR SALE to this......