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Pre-Approved – Buyers Need To Make It Happen

Posted on Wednesday, October 19, 2011

Whether you are looking to live in a property or buy and rehab, well priced homes in Naples, Florida are selling more quickly in Naples these days according to NABOR. The Naples Area Board of REALTORS (NABOR) reports on average homes are on the market 11 days less these days and sales price as a percentage of asking price is also rising.

Ok, so what? Well if you are a buyer you better have cash in hand or a pre-approval letter at offer time.

Seller’s in Naples know well priced properties are starting to move again and they also know over 30% of mortgage applicants are denied, according to the New York Times.  Seller’s may be less confident of an offer with financing contingencies.

Some properties today see multiple offers and when a seller and listing agent are sorting the offers out they may give the nod to a cash offer and may look favorably on a pre-approved letter. To some extent this has always been true but in these days of tighter credit and significant finance denial rates the cash/pre-approved buyer may have the upper hand.

To compound this somewhat think of a seller with their home on the market for many months. Maybe they have chased the price down by lowering their asking price incrementally over time. Now they have multiple offers. After waiting months are they likely to take their home off the market for an offer with a financing contingency? Maybe not if a cash offer or an offer with pre-approved financing is also on the table.

And why not go through the pre-approval process? You might as well know where you stand going in to your search. This is not a difficult process and the preliminary steps should not take much time.

Obtain pre-approved financing before you go house hunting. Your offer may be more attractive and you know right where you stand.