It is imperative that the prospective buyer has documentation qualifying them for the purchase. Not only does this provide leverage when negotiating for a sales price, it also sets the buyer at ease with information regarding monthly payments, taxes and insurance regarding the property.
The process is simple; a buyer will be introduced to the lender of their choice. This lender will assess the buyer’s financial status in relation to their future purchase. The pre-approval process can be completed over the phone in as little as 10 minutes. The lender will provide a pre-approval letter that informs the prospective buyer exactly how much the future loan amount can be, as well as what monthly payment on the purchase can be expected.
Not only does this process allow the prospective buyer to narrow their search for a property according to price, it also provides the prospective buyer with leverage in the purchase of the property. A seller will always consider a buyer with loan approval, but sellers are always weary of buyers without any form of guarantee of the intent to purchase.