A majority of Silver Lake Real Estate Agents will tell you that home shopping could be one of the most thrilling times of your life. But do you really know what being prepared to write a complete offer package means?
When you’re finally ready to move forward and write an offer on the home of your dreams the very first thing the Silver Lake Listing Agent or seller will ask for is your POFs for your down payment and a mortgage pre-approval letter. If you’re not quite ready yet, you’re better off walking away and not writing an offer at all. Moreover, the listing agent and seller will not take your offer earnestly.
Gathering the documents, letters, tax returns, proof of employment, paycheck stub, ETC isn’t very enjoyable. Our Silver Lake Real Estate Agents say if you’re working with a talented and efficient mortgage broker or loan officer, the process can be drastically less painful and stressful.
Once you have a pre-approval letter in your position, you’ll have a much clearer understanding of your home buying power, down payment options on various loan options and much more. Ultimately, at the end of the day, if you don’t get a pre-approval letter as a forerunner to home shopping you may prevent yourself from discovering the home that’s suits you best when it comes to budget, features and benefits.
Here’s Why It Makes Sense To Get A Mortgage Pre-Approval Letter To Begin With
Most of our Silver Lake Real Estate clients start searching the web on real estate websites and then insert the purchase price and a payment they locate from a loan calculator, before wandering into open houses in neighborhoods that they desire house styles they like, or good grading school districts.
The problem with this strategy is you’re wasting your time and here’s why. If you don’t really know what you can afford you may be home shopping outside of your price range or below your price range and not targeting the correct home for you.
If you first talk with a mortgage broker or loan officer and become Pre-Approved you will have a clear picture of how many homes you can afford based on your financial situation. This will aid you and your Silver Lake Realtor identify, write a complete offer package, and open escrow on your dream home much faster.
Work With A Professional Silver Lake Realtor
At the end of the day, our Silver Lake Realtors prefer to work with home buyers that have done the work of getting a pre-approval prior to beginning their house search. It’s not fair to my home buyer clients who have gotten pre-approved and are set to go if our Silver Lake Real Estate Agents are working with a client who isn’t ready to get going on writing complete offer packages or even worse really can’t afford to buy real estate in Silver Lake, CA. In addition, how can we help you find the best property if we don’t know what you can really afford.
Higher Acceptance Rate For Buyers With A Pre-Approval Letter
Let’s say you find an exceptional Silver Lake Real Estate Agent to work for you without you having a pre-approval. They’ll be rushing combing the MLS and off market properties and once you find the ideal home, the next step will be you’re scrambling to get a mortgage loan.
You may think you’re all set since you make plenty of money and the generic mortgage calculator says you can afford the home. Unfortunately, there are other factors that you need to take into consideration.
- How do you get paid – 1099 or W2?
- How do you file your taxes?
- What about your outstanding debts like student loans or credit cards, vehicles?
- How is your credit score?
- Did you factor in a down payment?
Silver Lake Real Estate Agents say these questions and much more go into figuring out a pre-approval. You may have just wasted countless hours, days, weeks, or months house hunting for the wrong property. Our Silver Lake Real Estate Agents suggest that you do yourself a favor and go through the pre-approval process prior to walking through the first open house door.
Most Silver Lake Real Estate Agents will tell you that a pre-approval letter will not only save time, energy, and money but will make the entire home buying process a lot less stressful for you and your Realtor. Period.