Boy, we’re back to a crazy real estate market. Multiple offers on properties, some cash buyers. And it’s our responsibility and our job, any mortgage professional to help you figure out how to win. When times are tough, you got to fight harder to win. We want to help you win.
And I’m going to give you probably the most important tip that you could do to try and win in this market. First of all, you’re going to hear this buzzword that means absolutely nothing called pre-approval. I want to talk to you about the loan approval. Now, to find out how much home you can buy and afford and qualified for, you got to give us some information.
Paystubs, 30 days, W-2 for one or two years, potentially tax returns for one or two years,got to pull your credit, I need a month of bank statements and we got to get a loan application. If you do that, the person you’re speaking with who’s not an underwriter is going to issue a document. It says, Hey, great news, you’re pre-approved, which you’re really not.
They’re just saying they’ve looked at your information and for some reason, real estate agents think that this is valid, that it’s important. It literally means nothing. It means you’ve spoken to a lender.
What I want to help you do is get an actual loan approval. What’s the difference? Well, as you can see, I need the same information. I might need two months bank statements instead of one.
But here’s the difference. I’m going to take the same information and I’m going to get it to a lender and we’re going to get you a full loan approval. Why do you want that over that? Your offer is going to be stronger because the seller is going to know you’ve actually been through the underwriting process, not just someone that put a pre-approval letter on a word doc or a PDF.
The second part is it’s going to give you a better opportunity to negotiate a better deal. Speak to a real estate agent. Ask them if you should get pre-approved or a full loan approval. I promise you, if they know what they’re doing, they’re going to say that one. Let me know if there’s any question. Thanks.