The real estate market is bursting with opportunity for first time homebuyers with good credit and a handful of cash, but without a pre-approved mortgage a buyer could be out in the cold. If you’re in the market to hire an agent and go house hunting, an agent might have second thoughts showing you property you have no way of proving you can afford. Furthermore, a homeowner might have qualms about signing an offer presented by a potential buyer who is lacking proof of financial means.

It is essential to interview with potential lenders who will verify your credit history and will give you an official preapproval letter stating how much you qualify for. The preapproval process is also a necessary process for homebuyers seeking third party finance, so buyers are encouraged to apply prior to visiting agents of making serious offers. Besides, anyone can throw numbers out there and/or make promises without being able to back them up. If you wouldn’t mess around when you are buying a multivitamin or Phentermine, why would you mess around when looking to buy a home? The only way to be taken seriously is to have a letter of preapproval from a lender.

Source: Ringsurf.com

This entry was posted on Friday, August 1st, 2008 at 9:56 pm and is filed under Home Buying Tips, Home Sales Tips, financing, mortgages. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.