Don’t Miss the Santa Fe Home You Want – Start with Preapproval

October 6, 2017

I received this from one of my lender colleagues, Francis Phillips of First Choice Loan Services, recently. It’s a great article on how important preapproval is, especially in a tight market like the one we’re in right now.

Santa Fe Real Estate
Detail of one of my current listings, located at 302 Calle Loma Norte

The Santa Fe housing market is hot right now. Inventory is low, homes are selling at a record pace, and prices are rising.

If you’re looking for a home, you need every advantage to compete. A preapproval will strengthen your offer.

Put yourself in the seller’s place. You receive multiple offers for your home. They are similar, except for one that includes a specific preapproval from the lender of your choice. This shows that the buyer’s ability to obtain financing has been reviewed extensively by the lender, including a review from underwriting. Now that’s a strong offer!

Freddie Mac puts it this way: It’s highly recommended that you work with your lender to get pre-approved before you begin house hunting. Pre-approval will tell you how much home you can afford and can help you move faster, and with greater confidence, in competitive markets.

By the way, a preapproval is stronger than a prequalification. Here’s the difference:

With a prequalification, you receive the initial estimate of how much loan you as the potential borrower may acquire from the lender for purchasing a home. This process is not underwritten and is not a commitment to lend. For a preapproval, the lender performs an independent verification of information through the underwriting process, including 3rd party reviews.

Don’t wait until you find the home you want to buy. Talk to a lender about your financing options now. Let’s make your offer a winner!

By the way, if you don’t have a lender, give me a call. I have several who do a great job getting my clients prequalified and preapproved.