Let Sellers Know You're Serious with a Pre-Approval from the Bank

 

The Importance of Getting Pre-Approved for a Mortgage

Today I'll be talking about an important topic for buyers, and give three reasons why you need to be pre-approved if you're planning to buy in Myrtle Beach or the Grand Strand.

1. Knowing What You Can Afford: You need to know how much you can buy before you start looking. This can avoid heartbreak and setbacks that are unnecessary in the buying process. If you know how much you can buy, it can also help to pinpoint an area for you to buy a home in.
2. It Can Give You Leverage: Most of the top agents that I work with will not even let our sellers sign a contract with a buyer that does not have a pre-approval letter from the bank. It doesn't make sense to do business with someone who may not be able to pay for a property. However, if you are pre-approved, you will stand out in the eyes of the seller and will be much more likely to land the property that you want.
3. The Market is Competitive: Our real estate market here in the Grand Strand and Myrtle Beach is very competitive right now, and there are a lot of properties available. However, I believe that 80% of the buyers are competing for 20% of the properties. There are lots of properties, but consumers only shop around for the best ones. Even in a market with lots of inventory, there is still a lot of competition, and you will need to stand out from the crowd with a letter of approval.

So, what is the difference between being pre-qualified and pre-approved?

If you're a seller, you should pay attention because when a buyer sends you these documents you should know the difference between them. A pre-approval is when a lender pulls the credit of the borrower, gets a social security number, and will probably also look in to your credit history. Pre-qualifications are only statements from banks that indicate how much you might qualify for, and are not indicative of your ability or financial readiness to buy a home. If you're selling, you will want to see a letter of pre-approval, and not just a letter of qualification. 

So, if you need any help finding property in Myrtle Beach or the Grand Strand, then please feel free to contact me and I would be very happy to assist you with all of your real estate needs. You can call me at (843) 251-2693 or email me atgreg@gregsisson.com