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