When it comes to real estate there will be some vocabulary words and terms that you will hear along the way. One of them can be a pre-approval letter. But has anyone ever explained how it can help your real estate experience in the Vail Valley Area? Being familiar with pre-approval letters and knowing the value of having one will help you in your home buying process. In this market, agents are not accepting offers without a pre-approval letter. I always want my clients to feel like they are as informed as they can when it comes to purchasing their homes.
Define Pre-Approval Letter
So, what is a pre-approval letter and how does it add value to your buying experience? The most important reason to have a pre-approval letter is to prove and know what you can afford. Oftentimes people get excited about the potential of purchasing a property and want to go look at the home and then find out that they are approved for less. This is a no win for the buyer because they’ve then seen what they can’t afford and feel let down when walking into what they can afford. If you are a serious buyer, it is so important to have your ducks in a row! Even if a buyer says they aren’t seriously looking… this usually turns out that they find the house that HAS TO BE THEIR HOUSE and they don’t have a pre-approval letter and then it’s gone. A pre-approval letter provides a buyer with documentation that you have been approved to borrow from the bank. It shows both your Realtor and the sellers that you are prepared to buy a home. Your pre-approval letter will state your loan program, loan type, and loan amount. It can make a huge difference for homebuyers in having their offer accepted by the seller. Keep in mind, a pre-approval letter doesn’t guarantee you a home loan. In this fast moving market I want my clients to be as prepared as they can be so they are ready to pull the trigger when their perfect home is found!
How To Get Your Pre approval Letter
Getting your pre approval letter completed is a pretty simple process. You can often do it online from the comfort of your house. Just grab your laptop and start filling in the necessary information they are requesting from you. The lender who is providing you with the home loan is the one who will give you pre-approval. You can shop around to find a lender that suits your needs. If your lender doesn’t allow you to sign up for this online then you will have to make a quick visit to the bank and fill out the forms! Once you get your pre-approval letter, be prepared to keep this file with you when you are looking for homes!
The lender is a large part of the transaction because inevitably they can make or break the deal. As a real estate agent, I call all lenders where an offer is being considered by our seller(s), look up reviews, and look up the company. I want to know how many deals are closed a year and also ask them about times their deals have not closed and can they provide a why. Have additional questions when it comes to pre approval letters? Just let your Realtor know, and they can help guide in the right direction!
How Can I Help?
I hope this blog on the value of a preapproval letter in Vail Valley will help you during your home buying experience! Please reach out to me! I want to provide my clients with interesting and up-to-date information so they can make informed decisions. If you think that my expertise and positive attitude might be of service to you don’t hesitate to reach out and contact me.
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Coldwell Banker Global Luxury Specialist
Coldwell Banker Distinctive Properties