Do buyers need a strong pre-approval?
In today's real estate market, bank's and other lenders have
tightened their lending standards and made it more difficult to qualify
for real estate loans. This makes it more challenging for buyers when
competing against multiple offers as we see so often.
As a buyer you will greatly enhance your odds for acceptance of your offer and a
successful purchase by getting "pre-approved" with a lender as early on
in the process as possible. The best time would be BEFORE even starting the home
search process. Also, a lot of sellers going to be much more impressed when the
pre-approval comes directly from the lender - like a major bank, than when it comes from a smaller, lesser-known company.
I'm not saying that loan brokers and smaller lenders are not good
to work with; I'm only suggesting that as buyer you may appear "better
qualified" by working with a well-known lender AND by getting a
"pre-approval" (not just a pre-qualification) in advance.
Now days, most sellers won't even consider an offer if a buyer hasn't
already been working with a lender. Again, however, a pre-APPROVAL is
much better.
As always, consult with your Realtor on your specific situation, and
ask your Realtor to refer you to a strong and reputable lender.
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