In the mortgage and real estate world, we often urge clients to get pre-approved. Too often, clients feel like they are doing extra work in getting pre approved and that just being prequalified is enough. I have a story about a client who now has $10,000 reasons to celebrate the decision to get pre-approved.
This client was introduced to us several weeks ago. They are a couple getting married this spring and decided that they would purchase a home and do it quickly. The reasons for doing so are solid. They have a wedding coming up in 90 days. Some of the homes they looked at a year ago are $40-$50K cheaper due to the foreclosure market. Finally they wanted to get in under the first time home buyer deadline. They are all great reasons to get out there.
We pre qualified them but then urged pre approval. The file has a couple of challenges. He is a union employee so there are several employers over the last two years. We got a letter from the union local explaining. Then he is taking the down payment from his retirement. We documented that and explained the process. Once we have a pre approval, they went shopping.
With the current market, they had plenty of options in the price range. The house they loved was priced to move at $279,900. Our buyers went in and made a strong case with their advantages of being a first time buyer with no contingency and even more importantly, their pre approval. Though in a competitive bid situation, our clients bid of $268,500 was accepted over a full price bid of $279K that was not pre approved. Our client’s professional realtor got the other side to see the value in our package and we are slated to close by April 23.
Listen to the professionals folks. They know what they are doing and can help you save time energy and most importantly money in the challenging Real Estate and Mortgage Environment today.
