This month’s term is Pre-Approval

Terms to Know When You’re Dealing with Real Estate

Every professional sector has its distinct terminology which the average layman doesn’t understand. This year, my monthly blog will present real estate terms that a layman can understand so that even the most ‘average bear’ can understand and use on their real estate adventures.

This month’s term is Pre-Approval

Pre-approval is when the buyer obtains a letter from their lender that indicates the price range the buyer can afford. It’s important as it shows the seller the buyer is a serious and a pre-qualified buyer. 

Being intentional and competitive are musts when buying a home right in today’s market. Low inventory also escalates the intensity of their homebuying process. 

Freddie Mac explains: “By having pre-approval letter from the buyer’s lender, the buyer is telling the seller that they’re a serious buyer, and the buyer has been pre-approved for a mortgage by their lender for a specific dollar amount. In a true bidding war, their offer will likely get dropped if you don’t already have one.”

Pre-approval gives the buyer an advantage if they get into a multiple-offer scenario. When a seller knows the buyer is qualified to buy the home, they’re in a better position to potentially win the bidding war. A pre-approval letter can be a game-changing piece of the homebuying process.

AgentOwned’s preferred lender, Prosperity Home Mortgage, offers a program called Prosperity’s Buyer Advantage.  It is a great place to begin when buying a home. But if they want their home purchase offer to stand out to sellers, they should ask for the Prosperity Buyer’s Advantage. They can get much of the home financing process out of the way and obtain a pre-approval letter before they even begin searching for a home. It will help their purchase offer be THE STELLAR OFFER to sellers. Having one in hand can really help the buyer land their dream home in an ultra-competitive market and will also give them peace of mind.

Call me today to get started.