Remember the time you showed up at a birthday party without a gift, or the Christmas morning you forgot to buy one of your kids a present? Or that European vacation you’ve been waiting for, except you didn’t get a passport? Yeah, no way, right? “Not on my life” you proclaim.
Well, believe it or not, people line up to buy homes today without a pre-approval from a lender. I know, crazy. They are basically the passenger facing the TSA agent without a license or ID. “You’re not getting on!” No way. Not a chance.
You see, we have a boom sellers’ market right now. There are way more of you than them and you are simply too easy to dismiss if you are a prospective buyer. You are competing with cash offers, often above asking. You and your little ‘no pre-approval’ self are invisible, not even in the game (or at the gate or on the plane).
Beyond being denied a chance to submit an offer or, in some cases, to even get an appointment to see the house, you won’t have time to get a pre-approval AFTER you’ve found the home you love. It will be gone. You can still drive by it, tell your family how you ‘almost’ bought that house and how that was almost your back yard – but it won’t actually be yours.
Now, like gifts and passport photos, not all pre-approval letters are good, not all are of sufficient quality. And experienced real estate agents, familiar with the local market, can sort out the wheat from the chaff, the good from the bad, the fiction from the non-fiction.
Here’s what they tell us about PRE-APPROVALS:
- Must come from a LENDER, companies that actually do the underwriting and disperse the funds.
- Must include more than just a credit check and an income tabulation.
- Must contain a review of employment history.
- Must VERIFY income, assets and funds to close. VERIFY.
Most high-quality mortgage lenders (I hear Shamrock Home Loans is excellent, really good, the best, #5 in the country even) have two prospective buyers, armed with a preapproval letter, for every one that is actually in the closing process. In other words, lenders, good ones, are built to arm house shoppers BEFORE they start visiting homes and bidding on homes. They have twice as many of those than they do people with actual homes under contract. Fascinating.
So don’t get caught going to the airport without your license or passport. Don’t forget the gift on your spouse’s birthday or the presents under the tree. Go get preapproved. Do it now. Call Shamrock Home Loans.
"I can't talk right now because my boss is watching me, but she usually falls asleep by 4:30 so I should be able to get back to you by then. And if you're really bored, check out my Shamrock web page. It's almost mostly true: www.shamrockhomeloans.com/page/dean-harrington"
Orignally posted July 11, 2017
Posted by Shamrock Home Loans on