Do you need to be Pre-Qualified?
In SW Florida a lot of my customers pay cash. It annoys me and them when new agents demand a pre-qualification letter from their bank when making a cash offer. I have an easy way to satisfy the pre-qualification letter requirement for most agents that demand one.
If one prefers to conserve cash and use low interest financing it needs to be presented properly from a negotiation standpoint. A pre-qualification letter may be accomplished with an on-line application process from a local bank. I have a good one that has been much better than the closing experiences I have had with out-of-the area on-line lenders. Ask about my Preferred Lender List! Having been a licensed mortgage broker for 15 years I rate lenders as Good, Better and Best for my customers needs. Not every lender fits the requirements of each customer.
Below is a standard explanation.
1. Pre-qualification acts as a dry run of the loan application process. The mortgage lender will use details you provide about your credit, income, assets and debts to arrive at an estimate of how much mortgage you can afford. The whole process may take only minutes or a few hours at most, and is free.
2. While a "pre-qual" is non-binding to the lender (because the information you provide has not been verified), it does serve as a good indication to potential sellers of your general creditworthiness.
3. These days most sellers will NOT accept an offer without a pre-approval letter, if financing is involved. If you are serious about buying, this is the first step towards getting you in your new home.