Wednesday, September 28, 2011 / by Ira Miskin
Among the members of your Realtor's Team who will assist you through this maze should be several experienced mortgage loan officers to interview and choose from. Each should be affiliated with a credible Lender that offer a variety of strategies and programs you can be explore to find the right loan program for your financial needs. Your loan officer will help you determine, based on your current financial picture, what priced home you can afford, what your monthly loan expense should be, and what it will cost to secure a home loan mortgage. They will help you step far enough through the qualification process to provide you with a Pre-Approval Letter. And they will work with you during your home search by collecting all the necessary financial data and documents their underwriters require so that when you make an offer on that perfect home, you are ready, willing and able to close the purchase on time.
Why is being pre-approved by your Lender so important to the buying process? Just as the sellers Realtor needs to help the seller think like a Buyer by understanding the Buyers wants needs and wishes, the Buyers Realtor must help the Buyer think like a Seller. One of the Sellers biggest concerns when accepting a Buyer's offer is "will the Buyer be able to secure a loan and close the sale on time." Once an offer to buy that move-in-ready, 2-story classic Georgian Traditional in the Windsor Oaks Sub Division in the Lassiter High School District in Marietta is agreed upon and bound, that property's standing in the multiple listings goes from "Active" to "Pending." That means the property is essentially off the market during the next 30 to 45 days it will take to complete the due diligence work, home appraisal and finalization of your loan package.
This is a very worrisome time for the Seller. If you fail to secure your financing the Seller will lose precious time and money and have to restart the sales process all over again. They will be concerned about whether or not their home will appraise for at least the agreed upon selling price. They will be concerned about their home meeting the Buyer's physical expectations during the inspection period. They will be preparing to move, securing their new residence. They may be purchasing a new home too, and their transaction may be contingent upon the closing of the sale of their home to you. They will also be working with a lender to secure their new home loan. There's a lot for the Seller to be concerned about. So if you are not pre-approved for a home loan by your lender, pending only the home appraising appropriately and there being no changes in your financial picture prior to the closing of your loan, you run the risk of your offer being turned down by the Seller or worse, losing your earnest money deposit because you failed to meet your financing approval obligations during the time period provided in your purchase agreement.
Being fully pre-approved gives you negotiating leverage when making an offer on your perfect new home. It allows you, with the guidance and advice of your Realtor as well as your loan officer, to confidently step through the due diligence period to complete all the essential tasks that lead to the close and that exhilarating moment after all the documents have been signed: receiving the keys and taking possession of your new home!
Don't underestimate the importance of getting pre-approved before you begin your home search.
Because selling or buying a home is a process and a journey, not an event, you will want to subscribe to our free video e-mail series for home sellers and buyers. For access to the complete series of free video and informational emails that can provide you with many of the important strategies and information you will need to make the best home selling or buying decisions you can email us at info@TMTRealtyGroup.net and ask for the SPECIAL E-MAIL SERIES REPORTS, the free no obligation series of email reports to be sent to you regularly over the next few weeks. Just put FREE VIDEO EMAIL SERIES in the subject line and let us know if want the home seller or home buyer series.
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