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Bobby Lehmkuhl & Danielle Dutcher's Blog

By Bobby LehmKuhl | Broker in 90265

Shopping For A Home? Get Pre-Approved First! - www.4Malibu.com

Shopping For A Home?  Get Pre-Approved First!

All real estate professionals will agree that it is essential to have a formal loan approval letter in hand before shopping for a home.  There are many advantages to be gained by getting a lender pre-approval.  It will put your mind at ease while searching for your new home and save time by checking out only the homes you can actually afford to buy.  Sellers will almost always take your offer more seriously than one from a buyer who does not have their financing in order.  You may even get a better price.  In fact, some sellers will not entertain an offer unless you are already approved for your loan.  Getting pre-approved requires that a lender take your application, verify your financial and credit information, then issue a specific amount they will lend you.  With the exception of finding a property, you are ready to close.
When an offer on a property is made by your Realtor, some prefer the preapproval letter be written for that specific property.  That way, the amount of the loan approval does not need to be stated.  For example, lets say a property is listed for $300,000 and you want to purchase it with 10% down.  A standard preapproval letter may say that you are approved for a home up to $350,000 with 10% down.  A better way may be to have a letter that says you are preapproved for the property located at 123 Main Street, with 10% down.  This allows for negotiations in price without having to constantly rewrite the approval letter.  There is also a school of thought that suggests stating a higher approval price indicates you may be willing to pay more for the property, which is not want you want.
So the next time you go house hunting, be sure you are preapproved with a reputable lender.  It will take a lot of the stress out of the process.

4 Malibu Real Estate Partners, Inc.

Malibu California Real Estate  ׀ Malibu Homes for Sale & Lease ׀ Malibu Land

23805 Stuart Ranch Rd., Suite 150, Malibu, CA 90265

O 310.456.3655 ׀  F 310.218.2117



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