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Thursday, April 04, 2013

Why did you ask me for a pre-approval letter before we find the house I want to buy?

The ability to purchase is important for all parties involved in a real estate transaction....buyers, real estate agents, and prospective sellers.

How are real estate agents paid?  As a buyer your real estate agent is typically paid on a commission basis dependent on sales.  This commission is typically paid by the seller.  No closed transaction, no pay.

Sellers expect serious offers to have an accompanying indication of a buyer's ability to complete the transaction if accepted.  For buyers obtaining a mortgage, a pre-approval letter is the critical supporting evidence.

Buying a home is an exciting process but knowing their financial limits allows buyers to shop with a realistic budget in mind.  An understanding of the entire financial commitment is critical to the process.

Obtaining a mortgage pre-approval from your lender is a primary step in the home purchase process.  It tells you how much you can buy (although the amount one is qualified for does not mean it is the  amount a buyer must spend).

So why would I ask for a pre-approval letter?  It is critical supporting evidence of a potential transaction.

Considering the purchase of a home in Viera, Suntree or Rockledge, Florida?  Call me at 321-693-3850 to discuss the process.

Need a mortgage pre-approval letter?  Call me for recommendations on several local mortgage loan professionals who may be able to assist you or call your bank or credit union!

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