To put you the buyer in the strongest negotiating position possible, you must get "Pre-Approved." Price is only one element in the negotiations of a home purchase, and not necessarily the most important one. Often other terms, such as the strength of the buyer or the length of escrow, are critical to a seller. In previous years, many Realtors recommended that buyers get "Pre-Qualified" by a lender. This means that you spend a few minutes on the phone with a lender who asks you a few questions. Based on the answers, the lender pronounces you "Pre-Qualified" and issues a letter that you or your agent can present to a seller. Sellers are aware that such letters are worthless, and here's why, none of the information has been verified. Many times unknown problems can surface later, judgments, alimony payments, dings on the credit report, both accurate and inaccurate, lack of down payment funds, funds that haven't been in the clients' bank account long enough, etc.

So the way to make the strongest offer today is to get "Pre-Approved". This happens after all the information has been checked and verified. You are actually approved for the loan and the only remaining item is the appraisal of the property. In most cases this process takes a from a few days to a few weeks depending on your situation. So go ahead, you are now Pre-Qualified to be Pre-Approved, and when you are done you will have another weapon in your negotiating arsenal.

Pete Willner
Who Will? Pete Will!
Broker Direct Real Estate
Murrieta, CA.
www.petewill.com