Will getting prequalified for a mtg. increase my opportunities to purchase?

Asked by Jerri Henske, West Palm Beach, FL Mon Apr 8, 2013

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Tony Warfield, Agent, Manhattan Beach, CA
Mon Apr 8, 2013
I am pretty sure you meant pre-approved. Because I bet you don't think going house hunting is a good idea, without knowing exactly what your purchase price maximum is, is a going to increase your chances of getting that house....right? Being completely prepared to enter a contract and having your lender in place with a DU approval is going to increase your chances. I cannot believe how many people I meet who say they started their house search weeks or months ago, but have not taken the process serious enough to get the most important step completed and get pre-approved.
0 votes
Bob Brubaker, Agent, Lake Worth, FL
Mon Apr 8, 2013
Jerri- A better way to look at " pre-Qualification" is that formal
or informal it will afford you the ability to better take advantage
of opportunities as they develope! Pre-Qualification by a competant
Mortgage lender will,give you a better sence of what you can move
on and realistically make happen.
Formal or informal,verified or unverified. The " qualification" is only
as good as what will ultimately have to be documented .
It's also important to keep in mind that a "firm comittment" from
a lender only happens after the consideration and valuation of
a particular property! Your Qualifications are only part of the "equation"
on any financed purchase! Best!


Bob Brubaker Highlight Realty Palm Beach County Fl. 561-876-6649
Web Reference:  http://pbc-realcam.com
0 votes
Tom Priester, Agent, Tequesta, FL
Mon Apr 8, 2013
Jerri,

You will find that today's real estate market can only be described as robust. Not only will a pre-approval that includes the information that the borrowers assets and income have been verified increase your opportunities to have an offer accepted you will not get far without one. A blanket pre-qualification will typically be rejected on most offers as buyers who have properly priced their homes will be getting multiple offers and have the ability to pick from the strongest.

Your best bet for successfully finding a home in this market remains traditional sales by motivated sellers who have taken care of their property. You need to ensure your unique housing needs are fully understood by your Realtor® and like you have been doing touring any new listings that hit the market immediately. Be prepared for multiple offers received by the seller within a very short time period so you have to know the metrics surrounding each home and be prepared to make a strong offer.

Have some patience, understand that you are not going to find the "perfect" house at a bargain price as that is not going to happen in the current market. You can succeed but you have to have a game plan.

I hope this information is helpful but if you need anything additional please feel free to contact me at your convenience.


Always at Your Service,


Tom Priester e-PRO
"Results Driven Real Estate"

Keller Williams Realty
561 308-0175
tom@tompriester.com
0 votes
stephen webb…, Agent, Kirkland, WA
Mon Apr 8, 2013
Hi Jerri
There is a difference between pre qual and pre approval. Pre qual is not worth the paper it is written on. Pre approval indicates the lender has at minimum pulled your credit and looked over prof of income. Pre approve is not finale but after hundreds and hundreds of pre approvals from compident lenders I have seen very few that did not work out.
The lender and loan officer is a critical choice for a home buyer and unfortunaly that choice is the first step of the buying process. You will find articles on Your-Road-Home.com that will serve you well. Prequalification vs Pre Approval, Consultation Interviewing Loan Officers and also read #9 about the MCC tax credit. Best tax credit ever for first time home buyers.
Gather up all the information you can find from unbiased sources than interview loan officers. Trulia is also a good source of info and when you are ready to interview loan officers you will find them from your area offering their services on Trulia. A good source.
Choose a local lender and loan officer. You will also find a link on Your-Raod-Home to FL States assistance and grants for first time home buyers. A first time home buyer is someone who has not owned their primary resident for three years.
Best of Luck, Stephen
0 votes
Annette Law…, Agent, Palm Harbor, FL
Mon Apr 8, 2013
Jerri,
Be aware there are two terms used interchangably but must be defined for proper understanding.
Pre-qualified is a condition where you relay data to someone at a keyboard and a number is popped out that says, "Pre-approved for a gazillion dollars." No data is verified. Tax returns not submitted. Pay stub not sent in. Your SS# not collected. They are worthless.
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A PRE-APPROVAl has more fabric. Unfortunealty, many banks issue a preapproval and do absolutely NOTHING to verify anything. They take your data, your SS#, your 1040 and sit on it. They may run your creadit report. Many banks do nothing until a week or two before closing and that creates real havoc. You agent can advsie you who these lenders are.
If your agent suggests a 'too big to fail, too big to govern, and too big to care if you are homeless' bank. this should cause the waving of big red flags.

A pre-Approval or proof of funds, is intended to be a document confirming your ability to purchase a home at a specific price point based on 'verified' data.
A pre-Approval will be a REQUIREMENT to purchase a home.
Many homes require the buyer have a pre-approval before they can VIEW the home.
Nearly all require a pre-approval to accompany any purchase offer.
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Agents representing home sellers trust agents representing home buyers HAVE done their job and secured the pre-Approval from the buyer. When a agent has a history of failing in this responsibility, they will encounter technical difficulties in gaining access to some homes for sale.
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A secondary benefit is to cablibrate your shopping price point. Your agent, and you, must understand the likelihood of success shopping at $600,000 with a $400,000 budget is signifcantly dimenished.
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If you are serious about buying a home, having the right documentation will be understood to be important. Those who are not serious, are always looking for a means to circumvent the process that has proven to be efficeint and reliable. So, are you a serious buyer?

Best of success to you,
Annette Lawrence, Broker/Assoicate
Remax Relatec Group
Palm Harbor, FL
727.420.4041
http://RealEstateMadeEZ.us
0 votes
Deborah Orr, Agent, Rosemary Beach, FL
Mon Apr 8, 2013
Hi Jerri,

Prequalification will give you a general idea of how much you can afford and some sellers require pre qualification before they will accept an offer. The reality is that anyone can obtain prequalification because it merely entails answering a few questions which don't have to be backed up with documentation. Even if the mortgage broker runs a credit check, whether a mortgage is given depends on the accuracy of the information related to income and expenses and this only happens after application. So to me, it can't hurt to get a prequalification but in my opinion it really doesn't carry a lot of weight as to whether I would advise my client to take an offer or not. Rather, I would protect them by taking backup offers and carefully following up on deadlines for final approval after an executed contract is in hand. In a multiple offer situation and offers that are very close, perhaps a pre approval could carry a little weight.
0 votes
Marilyn Farb…, Agent, BOYNTON BEACH, FL
Mon Apr 8, 2013
Yes, and it will also give you an accurate picture of what price house to purchase.

If you need the name of a mortgage broker, call me and I would also be happy to help you find "the home of your dreams."

Regards,
Marilyn Jacobs, Realtor
561-638-9818
marilynfjacobs@gmail.com
Jeffrey Ray & Associates
0 votes
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