How a Mortgage Preapproval May Help You Save Thousands of Dollars when Buying a Home

Steve Carter
Branch Manager | Mortgage Expert | Passionate Cook

Thanks for being here. I’m excited to share with you one of the most valuable advantages anyone can use when shopping for a home.

An advantage that may:

• Save you valuable time
• Provide you significant bargaining powers
• Save you thousands of dollars

A mortgage preapproval letter typically moves your offer from “hope” to a “sure thing.”

It’s your Homebuyer’s Advantage that may:

During my nearly 30 years of home lending experience in Jacksonville, the most valuable advantage I’ve shared with my clients is “get a preapproval before beginning your home search.”

That letter can make all the difference in the world for serious homebuyers who want to save time and—most significantly—money.

It’s a letter you receive from a lender after you filled out a loan application and the lender verified your:

How does a preapproval differ from a prequalification?

A Prequalification Letter

• Shows an estimated loan amount instead of a concrete amount
• Is based on a cursory assessment of your credit and income instead of an in-depth analysis of your ability to purchase a home.
• Is typically generated after a verbal conversation or answering a few questions on a smart phone app.

A home seller would probably be hesitant to accept your offer and take their home off the market based on a prequalification.

In the eyes of a home seller, since you’ve already been vetted by a lender—you’re about as close to a sure thing as a cash buyer.

And that gives your offer to a home seller substantial weight – a competitive advantage over most home buyers.

Consider this home offer scenario:

Remember, Most Home Sellers Will Follow the Path of Least Resistance

That means your offer accompanied with a mortgage preapproval letter stood out, even though it’s $10k less than the asking price.

Congrats!

You get the house you want plus saved thousands of dollars in the process in this scenario.

If you have a moment, I’d be happy to share stories of how I’ve helped borrowers save thousands of dollars.

That’s one of my favorite topics to talk about—putting cash in the pockets of my clients. Give me a call at (904) 379-4748 to chat.

The real estate agents I speak with are amazed that the majority of homebuyers don’t go house hunting with a preapproved mortgage in hand.

Quite honestly, in a sellers’ market, anything you can do to stand out from the crowd will go a long way to you winning the right house at the right price.

The best way I know for home buyers to stand out is to get preapproved for a mortgage.

According to a frequently quoted statistic from a LendingPatterns.com report, only 10% of homebuyers in 2016 got preapproved.

That means your preapproved letter puts you ahead of 90% of the home buyers. Eager home sellers will notice that. And that can give you leverage in the negotiating process.

The best and most experienced real estate agents I know tell me they prefer working with preapproved home buyers.

In fact, some agents will outright not show houses until their client gets preapproved.

They know you won’t be wasting their time and money: Driving around and showing houses takes time, gas and scheduling efforts between agents, buyers and home sellers.

They can search for homes and areas within your target price: That means every house you and your agent tour will be one you’re financially capable of buying. Less chance of disappointments during the house hunting process.

In a sellers’ market, minutes matter. The ability to act fast with a serious offer accompanied by a preapproved letter gives you and your agent an edge that can’t be ignored by the home seller.

A major advantage a preapproved mortgage brings to both the homebuyer and seller is speed to closing.

Since the loan application and initial underwriting approval is completed, all that’s required to complete the underwriting process is:

• Property appraisal
• Completed title review
• Final approval

At this point, the loan becomes cleared to close. And getting the keys to your new home is now just days away.

It’s our goal to assure success for every borrower who asks for our help to purchase a home.

We make sure you get a real mortgage preapproval letter based not only on a credit review but full verification of income, tax returns and assets.

Sure, there’s a bit of effort on the front end of the process, but the advantage is huge for you—the borrower.

• Empowers you with a strong negotiating position that may save you money
• Helps you search quickly for a home you’re eligible to purchase
• Decreases risk that unforeseen bumps in the road will delay closing or derail the home purchase altogether—a disappointment you don’t deserve

I’m proud that 100% of our submitted loans close because of our diligent efforts on behalf of our borrowers. Not many lenders can make that claim.

And that gives our mortgage preapproval letters substantial weight with real estate agents and home sellers in the Jacksonville area.

That’s an advantage I’d love to put into your hands.