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Home shopping could be one of the most exciting times of your life. Do you clearly understand what being prepared to write a complete offer package means? In this article, we’re going to breakdown the correct way to present yourself to a San Fernando Valley seller and their real estate agent (the San Fernando Valley listing agent).

When you’re ready to put in an offer on the home of your next home, the first thing the listing agent or seller will ask for is your POFs for your down payment and a mortgage pre-approval letter. If you’re not prepared you’re better off walking away and not writing an offer. The listing agent and seller will not take your offer seriously.

Gathering the documents, letters, tax returns, proof of employment, paycheck stubs… ETC isn’t very fun. If you’re working with a talented and efficient mortgage broker or loan officer the process can be significantly less painful and stressful. Once you have a pre-approval letter in hand, you’ll have a clear picture of your home buying power, down payment options on various loan options and more.

At the end of the day if you don’t get a pre-approval letter as a precursor to home shopping you may prevent yourself from discovering the home that’s best for you both in terms of budget and features and benefits.

Here’s why it makes sense to get a mortgage pre-approval letter first

A handful of potential home buyers in the San Fernando Valley begin surfing the Internet on real estate websites and then plug in the purchase price and a payment they find from a loan calculator, before wandering into open houses in neighborhoods that they desire house styles they like, or exceptional grading school districts. Unfortunately, the problem with this strategy is you’re wasting your time. If you don’t really know what you can afford you may be home shopping outside of your price range or below your price range and not targeting the correct home for you.

If you first speak with a mortgage broker or loan officer and become Pre-Approved you will have a clear picture of how just many homes you can afford based on your financial situation. This will help you and your San Fernando Valley Realtor:

  • Identify
  • Write a complete offer package
  • And open escrow on your dream home much faster

Higher Acceptance Rate for Home Buyers With A Pre-Approval Letter

Let’s say you find a San Fernando Valley Real Estate Agent to work for you without you having a pre-approval. They’ll begin working extremely hard combing the MLS and off market properties and once you find the ideal home, the next step will be you’re scrambling to get a mortgage loan. You may think you’re all set since you make plenty of money and the generic mortgage calculator says you can afford the home. But,

  • How do you get paid – 1099 or W2?
  • How do you file your taxes?
  • What about your outstanding debts like student loans or credit cards, vehicles?
  • How is your credit score?
  • Did you factor in a down payment?
  • Are you getting a gift from a family member?

These questions and much more go into determining a pre-approval. You may have just wasted countless hours, days, weeks, or months house hunting for the wrong property. Do yourself a favor and go through the pre-approval process before you walk through the first open house door.

Ultimately, a pre-approval letter will not only save time, energy, and money but will make the entire San Fernando Valley home buying process a lot less stressful for you and your Realtor. Period.