Pre Approval Letter: What Makes It So Important?
The all-important pre approval letter. Why is it so essential to your search for a home? When you find that perfect house, you need to be ready. You need to pounce on it like a hungry cat, with all your faculties and abilities at the ready.
And here is what you might not know: A pre approval letter tailored to the exact house you want to buy can be a powerful asset.
You need a specific pre approval letter. Here’s why:
- Paints you as a qualified and serious buyer
- Increases your bargaining power
Which means that you want your first strike, locked and loaded. Get your pre approval done before you even go out looking at houses. And even that may not be enough. The buying market out there can be plenty competitive, especially if you are looking in an area with a desirable school district.
Imagine this scenario: You go out on a beautiful day to jump from open house to open house and you find the perfect one. Not a metaphor. The actual perfect house. Open kitchen that leads into the dining room out to beautiful pool. Or maybe you are looking to downsize to the optimal townhouse after the last kid has gone off to college.
But you did not get pre approved. The other buyer, over there in the corner, huddling with an agent? They have a pre approval in their pocket. They have a leg up on all the other buyers, including you.
You always need to be prepared. So you need to be pre approved and ready to prove it. Having someone in your corner that can prepare a pre approval letter specific to the house you want is a sneaky good strategy. Think about a scenario where you and the buyer you are going up against is pre approved. But they have a general letter from a bank that says how much they can finance.
You, on the other hand, have a letter that states the specific house by address and shows you are pre approved for the exact amount you are offering.
It shows the seller that you are prepared. And very invested in making the deal on that particular house. You are not canvassing neighborhoods, spraying out offers at every viable house in your price range. You found what you wanted and are going after it.
Sellers respond to that personal attention. It means that you and your team have done homework, considered all the factors, from taxes to the potential appraisal and the surrounding comps. It signals the start of a more focused and potentially shorter negotiation. Which can lead to a quicker deal.
Sellers like quick deals. That means less time on the market, less open houses and less stress-filled house cleaning for showings.
Arm yourself properly and you will be on to a much more successful campaign to buy a house.
How did having a pre-approval help you in your house search? Tell us in the comments.
The Pre Approval List
So you know why you need to be pre approved, here is a handy checklist that covers everything you need for us at All Shores to get you pre approved.