Don't Get Pre-Qualified

Do you want to get the best house you can for the least amount of money? Then make sure you are in the strongest negotiating position possible. Price is only one bargaining chip in the negotiations, and not necessarily the most important one. Often other terms, such as the strength of the buyer, are critical to a seller. In years past, I always recommended that buyers get pre-qualified by a lender. This means that you spend a few minutes on the phone with a lender who asks you a few questions. Based on the answers, the lender pronounces you "pre-qualified" and issues a certificate that you show to a seller. Sellers are aware that such certificates are WORTHLESS, and here's why. None of the information has been verified!

Oftentimes-unknown problems surface! Some of the problems I've seen include recorded judgements, child support payments due, glitches on the credit report due to any number of reasons both accurately and inaccurately, down payments that have not been in te clients' bank account long enough, etc. So the way to make a strong offer today is to get "pre-approved". This happens AFTER all information has been checked and verified. You are actually APPROVED for the loan and the only loose end is the appraisal on the property. This process takes anywhere from a few days to a few weeks depending on your situation. It's VERY POWERFUL and a weapon I recommend all my clients have in their negotiating arsenal.