Sellers want to have confidence that people walking through their homes are real potential buyers. Sellers want to know a buyer has the ability to purchase a home before they accept an offer.
Real estate agents want to know prospective buyers have the ability to purchase a home in the price range they will be looking before heading out to see properties.
But more importantly serious home buyers should want to know as well - first.
How does one prove they have the ability to purchase a home?
For cash buyers it can be as simple as a letter from a bank or investment firm indicating the funds are available. If a buyer has the ability to pay cash then the challenge is primarily in deciding the budget.
For non-cash buyers the proof is a mortgage pre-approval letter. To start a home search the mortgage pre-qualification can initially serve as a good starting point for a buyer who is starting an initial search. (Maybe for the first day of looking.) But after the initial search commences the preferred prof is the mortgage pre-approval.
What is the difference between a mortgage pre-qualification and mortgage pre-approval?When is the highest offer not the best offer?
Considering buying a Melbourne, Florida home? Call me at 321-693-3850 or send me an email if you have questions. I can help and would welcome the opportunity!
