The Importance of Lending Pre-Approvals
 
Did you know that almost 1/3 (one third) of Escrow Failures are caused by problems with obtaining the necessary financing to complete the Purchase?
 
If you are seriously considering a Real Estate Purchase within the next 12 months, it is extremely important that you obtain Lending Pre-Approval NOW! (And please note: Pre-Qualifications are not the same as Pre-Approvals and have little value other than establishing a General Price Range for a Buyer’s preliminary property searches).
 
Why NOW??? Because……..
 

1. Professional Real Estate Agents will not allow potential Buyers to schedule appointments to tour (on-site) their listings without proof that the Buyers are capable of making a Purchase for an amount at least equal to the listed price.
2. Providing proof that you can afford a Property carries significant weight in the strength of any offers you might make. It gives you a leg up on other non-approved Buyers competing for the same home, and adds negotiating leverage when you are trying to get the Price and Terms that you desire in the Purchase Contract.
3. And last, it removes stress! There is a lot of information that is required in the Lending Process which takes time to gather and subsequently be reviewed by the Lender. You do NOT want to be under pressure to complete the approval process after you have opened Escrow. The typical time allotted for releasing the financing contingency is 21 days. This is often not satisfactory if anything unexpected should arise, or your desired lending source has a backlog of other loan approvals.

 
The following NAR statistics are worthy of your consideration: