If I have a buyer that is a customer, I want to know if they are truly serious about purchasing a home. We don't get paid until a home closes, so why waste precious time and gas with buyers who are really just lookers.
You are correct. Sellers don't want to consider offers unless the buyer is somewhat qualified.
I say "somewhat" since not all mortgage pre-approval letters hold water, however, they give the sellers peace-of-mind that they are working with a serious buyer who probably has the means to purchase the property.
John Meyers, Meyers Realty - Chicago
a lot of deals fall apart due to finance issues, sellers are trying to avoid wasting their time with an unqualified buyer.
your agent should have explained this to you....
Every purchase contract you are writing has to be qualified by using your pre-approval. Without it, there is no way for the buyer's agent to determine if you will be able to close or not. Your pre-approval should be issued within the last 90 days and preferably from a Direct Lender with No condition except an appraisal.
Some sellers are picky about the lender and might also require a Desktop Underwriting which basically means your lender has gone through your employment, asset and other verification and is ready to fund your loan as soon as they get the appraisal.
Yes, the sellers will want to see a copy of your pre-approval letter. They may even ask to see your asset documentation to prove that you have sufficient funds to close.
Elva A. Wormley
Cell: (408) 569-3512
Office: (408) 615-8500
C2 Financial Corporation
2845 Moorpark Avenue, Suite 209
San Jose, CA 95128
I've written a best selling book called Buying a Home: Don't Let Them Make a Monkey Out of You. It'll teach you how to buy a home and get a mortgage without getting ripped off. Follow the link below.
Best of luck!