A resident of Wichita, Kansas, Dan Madrigal is an experienced real estate professional who has served at Berkshire Hathaway Home Services for over two decades. In this role, Dan Madrigal assists home owners with selling their home and home buyers with obtaining a pre-approval letter prior to searching for their new home.
A pre-approval letter is a document commonly requested of homeowners by real estate agents before home seekers begin their search for a new home. This document testifies that a person is in a financial position to purchase a home since they either already have the necessary funds available or have been approved by a financial lender to purchase. Here are three reasons home seekers need a pre-approval letter.
1. It enhances negotiation ability. Buyers with a pre-approval letter are in a better position to negotiate during the home-buying process than those who don’t have one. For example, if a homeowner receives more than one offer on their home, they are more likely to accept an offer from a buyer who has already been pre-approved.
2. It helps protect sellers. Qualified homebuyers who have been pre-approved by a financial lender provide a degree of proof to realtors and home sellers that they are serious about the buying process. Some sellers even require a pre-approval letter before they spend their time and effort preparing their home for a showing.
3. It protects the safety of real estate agents. Agents that request a pre-approval letter gain assurance that the prospective buyer has been researched by a financial lender. Information such as the buyer's previous work history, current financial situation, social insurance number, and other personal information are checked by the lender before a pre-approval letter is issued.
A pre-approval letter is a document commonly requested of homeowners by real estate agents before home seekers begin their search for a new home. This document testifies that a person is in a financial position to purchase a home since they either already have the necessary funds available or have been approved by a financial lender to purchase. Here are three reasons home seekers need a pre-approval letter.
1. It enhances negotiation ability. Buyers with a pre-approval letter are in a better position to negotiate during the home-buying process than those who don’t have one. For example, if a homeowner receives more than one offer on their home, they are more likely to accept an offer from a buyer who has already been pre-approved.
2. It helps protect sellers. Qualified homebuyers who have been pre-approved by a financial lender provide a degree of proof to realtors and home sellers that they are serious about the buying process. Some sellers even require a pre-approval letter before they spend their time and effort preparing their home for a showing.
3. It protects the safety of real estate agents. Agents that request a pre-approval letter gain assurance that the prospective buyer has been researched by a financial lender. Information such as the buyer's previous work history, current financial situation, social insurance number, and other personal information are checked by the lender before a pre-approval letter is issued.
