Most buyers don’t consider themselves competitiors when shopping for a home. With low interest rates, it’s not uncommon for sellers to receive multiple offers. When buyers are in a position to compete with other buyers, they need to do everything possible to gain a competitive edge. One thing they can do is get pre-approved.
There have been changes in the LOUISIANA RESIDENTIAL AGREEMENT TO BUY OR SELL for 2013. Buyers are required to produce a preliminary pre-approval letter shortly after an offer has been accepted. The amount of time for a buyer to provide a pre-approval letter is decided by the buyer and the buyer’s agent when an offer is made. The amount of time could be a few days or up to 10 days. If the time to provide a pre-approval letter expires, the seller has the option to cancel the agreement. In some situations, the seller requires a pre-approval letter with the offer. In other situations there may be multiple offers and if you are the only one with a pre-approval letter, you have a better chance at having your offer accepted even if you are not the highest offer.
There are four items that should be stipulated in a good preliminary pre-approval letter. They are: (1) a loan application has been made, (2) a credit report has been obtained and reviewed by a lender, (3) a preliminary loan commitment has been secured from the same lender, (4) financing equal to the loan amount provided is available to complete the transaction.
With a preliminary pre-approval letter, the seller will be more willing to negotiate. Also, the buyer will know exactly how much they can spend on a house. There have been buyers shopping for homes they can’t afford. Choosing a Realtor and the preliminary pre-approval letter should be your first steps when you begin shopping for a home.
Visit www.living504.com to connect with local Realtors Carl and Karen when you are ready to buy or sell your home.