Get "Pre-Approved" - Not "Pre-Qualified!" Do you want to get the best property you can for the least amount of money? Then make sure you are in the strongest negotiating position possible.
Price is only one element in the negotiations, and not necessarily the most important one. Often other terms, such as the strength of the buyer or the length of time to completion, are critical to a seller. In years past, it was always 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 certificate that you can show to a seller. Sellers are aware that such certificates are WORTHLESS, and here's why! None of the information has been verified! Many times unknown problems can come to the surface! Some of the problems I've seen include recorded judgments, alimony payments due, glitches on the credit report due to any number of reasons both accurately and inaccurately, down payments that have not 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 information has been checked and verified. You are actually APPROVED for the loan and the only loose end is the appraisal on the property. This process takes anywhere from a few days to a few weeks depending on your situation. It's VERY POWERFUL and a weapon I recommend all my clients have in their negotiating arsenal.
I would be happy to provide you with contact information for a few different lenders for your consideration. Just give me a call at 604-820-7733.
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