Why Eagle Idaho Home Buyers Need Pre-Approved Financing
Sellers Require It
Eagle Idaho home sellers, and their listing agents, know better than to take their home off the market for a buyer who lacks pre-approved financing.
Doing so causes anxiety, uncertainty, and can damage salability if a sale falls through due to a buyer’s failure to obtain financing.
Know Your Costs
Buyers who get pre-approved before making offers also benefit from knowing the exact costs of their financing upfront.
A reputable lender will require you to formally apply for financing, then underwrite your pre-approval and provide a Truth In Lending disclosure that includes all mortgage costs.
Underwriting includes verifying source(s) of funds to close, employment, credit, and other lender criteria.
With an underwritten pre-approval, all that remains is documenting clear property title and an appraisal.
Beware of lenders who issue “pre-qualification” letters.
A pre-qual letter is a weak promise, usually including a laundry list of items that remain to be verified.
In real estate, we label pre-qual letters “Swiss Cheese” loan commitments (because they’re full of holes!)
Prove You Can Close
Eagle Idaho home sellers want to know that you can actually obtain financing.
Providing an underwritten loan commitment with your offer proves that you have been pre-approved for your financing.
Head Start With Your Financing
If you intend to finance your purchase, you will eventually need approval for your financing.
Getting pre-approved upfront eliminates rushing around arranging your financing after your offer is accepted and allows you to close sooner with fewer hassles.
Stronger Negotiating Position
In our fast-paced, strong seller’s market, you may face competing offers.
You don’t want to get into a multiple offer competition without pre-approved financing.
Savvy buyers with pre-approved financing always prevail vs. buyers lacking proof of financing in multiple offer situations.