How Can a Pre-Approval Ease Your Worries?

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Today we are going to continue our discussion on pre-approval letters and why they are so important in a type of market like ours. Last time, we talked about how important a pre-approval was compared to a pre-qualification, including the fact that it's a much more thorough and validated process. 

Right now in Frisco, we still have very low inventory. We have just 958 homes on the market, and over 300 under contract, with 741 homes closing in the last 6 months. Homes are selling quickly, so it's really important that if you're considering buying, you are ready. Having a pre-approval letter is a big part of that equation. 

You want to have that pre-approval for a seller because they know the difference between it and a pre-qualification. With a pre-approval letter, the seller knows that you are vetted and approved by a lender, after having received all of your financial information. 

We recommend to everyone thinking about buying any time in the next 180 days to start working with a lender now to get a pre-approval letter. Our average days on market is half of what it used to be, and the pre-approval letter is essential to presenting the best offer possible. 

If you have any questions for us, or want to get a pre-approval, give us a call or send us an email. We can get you in touch with one of our guys to help you out!

What's the Difference Between Pre-Qualification and Pre-Approval?

Buying a home? Click here to perform a full home search
Selling a home? Click here for a FREE Home Price Evaluation 
Call me at (970) 418-0183 for a FREE home buying or selling consultation

Today we'll discuss the difference between a pre-qualification letter and a pre-approval letter. 

A pre-qualification letter is very easy to attain.  You simply call a lender and tell them your name, address, social security number, and how much money you think you have. The lender runs a credit report, and then, based on just that small amount of information, they type up a letter saying that you are pre-qualified. 

In order to get a pre-approval letter, you have to go through a real process. You provide your taxes, paystubs, and bank statements, and they run a credit report. When we send a pre-approval to a seller, they know that the lender is sure that you are truly approved to buy a home. 

In our current market, we're starting to see multiple offers and a lot more competition. Having a pre-approval letter puts you far ahead of other buyers who only have pre-qualification letters. 

We do ask our clients to get pre-approval letters while we're out looking at properties. That way, when we find you the right home, we know that we are ready to put in a strong offer. 

Whether you're getting a pre-qualification or pre-approval letter, it is typical that you would pay for the credit report. However, this is the only cost to our buyers. 

If you would like to get a pre-approval letter before looking at properties, give us a call for a list of our preferred lenders.