“Do I need a pre-approval letter?”? That a question we hear often at Premier Properties of South Florida.
Maybe you’ve been considering it for a while or perhaps a change in your career, your family or your lifestyle makes it necessary, but if you’re thinking about buying a home in Jupiter, Tequesta or across the Palm Beaches you may be wondering where to start. Should you buy the Sunday paper, set up an account on an internet real estate site, or start driving around neighborhoods?
Many real estate experts suggest starting with a visit to your bank to secure a pre-approval letter. But is this step really necessary?
Premier Properties of South Florida is an esteemed real estate business working with both buyers and sellers throughout Palm Beach and Martin counties. Below, we discuss the benefits of securing a pre-approval letter from your bank of choice.
- You’ll know how much you qualify to borrow. You probably already have an idea of how much you’d like to spend each month. However, understanding how a monthly payment calculates to a home price can be tricky math. There’s home insurance and taxes to consider, as well as possible PMI insurance. Your down payment and interest rate also play a part. By having a conversation with your bank, you can get the calculations out of the way and determine the top of your price range. Further, you can be sure that you qualify to borrow the amount you think you need.
- It gives you leverage. When you find your dream home and you’re ready to make an offer, the pre-approval letter lets the sellers know that you’re serious. Especially if you’re up against an opposing bidder who does not have pre-approval letter, your due diligence will show sellers that you’ll be able to secure the loan.
It’s important to note that pre-approval letters do require more upfront work on the part of the buyer and it’s not the same as a pre-qualification. You’ll have to submit more paperwork and talk to more people. We should also note that it’s not a binding agreement. If your credit changes, if interest rates rise, or if the letter expires, the lender will need to review your application again to recalculate your mortgage amount at the time of the sale.
If you’re considering buying a home, don’t do it alone. Let the Premier Properties of South Florida team help you along the way. Not only can we help you find the perfect home for you and your family, we can help you manage the entire process with expert advice and a place to turn with questions.
If you are looking to buy or sell your next home in Jupiter, Tequesta, Northern Palm Beach or Martin County and think all real estate brokers are the same, let Premier Properties of South Florida show you how we are changing the way people buy and sell Real Estate. We want you to Love Your Realtor, so we take pride in offering value to our clients, often by saving them time and money
Find out how at http://iloveourrealtors.com/!