In today’s real estate market, home buyers need a pre-approval letter before any seller will take them seriously.
A buyer needs to be pre-approved before they make an offer to purchase a home. Period. Most Seller’s agents will not show an offer to their Seller without a pre-approval letter. This letter shows the Seller that in-fact the Buyer is capable of going through with the purchase.
A pre-approval letter means that the lender has independently verified the Buyer’s credit, income, debt-to-income-ration, and all the other factors that are needed to determine a loan amount. The best lenders will run that Buyer through an automatic underwriting system and if any conditions arise will double-check with an actual underwriter.
When you are pre-approved, there is very little that can stand in the way of you purchasing your Philly home for the dollar amount you’ve been approved for.
What Does a Pre-Approval Letter Mean To a Seller?
- That once the Seller accepts your offer to purchase, you the Buyer will be able to buy their home.
- Sellers and their real estate agents feel more comfortable if the letter is from a local lender.
- If the Buyer’s agent can vouch for the mortgage lender it will make the Seller feel that much more at-ease.
Getting pre-approved and understanding how much your monthly payment will be also let’s your real estate agent know what you can afford so they can find a home that your are comfortable paying for.