In my first blog in this series, I talked about how homes and sellers are competing with each other in this buyer’s market in three ways. In the last segment, I talked about presentation.
Pre-approval is the third competitive factor. Today, when sellers consider an offer, they want to know if the potential buyer is pre-approved. This is different than pre-qualification, a process in which the buyer, based on stated income and other financial information, is told he or she are likely to be approved. It isn’t binding!
Pre-approval is a powerful competitive factor for the buyer and seller as both buyer and seller are winners. A pre-approval clearly says to the seller that the buyer can afford the house and will obtain financing. If you are buying, you have a big competitive advantage when you make an offer with a pre-approval in hand. If you are selling, and an offer comes in, you know that a pre-approved buyer is a qualified buyer who has started the mortgage approval process. Now you can both move on to other negotiations and ultimately strike a deal.
Posted by: 
Mary Jane Benedetto
