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Is it really that hard to buy a house in today’s market? Do I really have to meet with a lender before going to look at homes? Growing up as a basketball player, I often resort to athletic metaphors. With that being said, going home shopping without being pre approved by a lender is like going to the gym without shoes. You can watch others play, you can sit on the side, but you can’t play the game. It doesn’t matter how good the game is, others won’t let you play because you aren’t equipped.

In order to write an offer in today’s market, lenders are looking for full documentation in order to pre approve you for a loan. Having a pre approval for a loan is necessary for writing an offer. It lets the seller know that you are serious and have done the needed work to actually be able to purchase the home.

This past week I took a client to look at Pasadena Homes. Although I had been told by other in my office, I decided not to listen to what they had to say. They had told me to make sure everyone I show homes to has been pre approved for a loan. I knew that it was the best option, but in this case my buyer was anxious to see the homes for sale. So, I met with her, got a better idea of what she was looking for and took her out to see a few homes.

Yes, we found the perfect home. It was a great price and the others didn’t even compare. The next day she talked to her lender. Surprisingly we found out that she had a problem with her credit and would not be approved for the amount she expected. Needless to say, the house sold before we could write an offer. As a young Pasadena Real Estate Agent, I can only say I have learned from my mistakes.

In addition to having a pre approval letter, it is recommended that a buyer have a copy of FICO scores, as well money in a checking account to include a 3% earnest money deposit with the offer. Putting together a good offer is crucial to purchasing a home today.

Lending has become the biggest hurdle in purchasing a home, so if you can get past that you are in for a good ride. The same can be said when you’re trying to find Commercial Properties for Sale. Don’t give up! Its a great time to buy!


Filed under: Real Estate

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