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6277 E Riverside Blvd, Rockford, IL 61114      815/381-1195  

STRATEGIES FOR BUYERS Get Yourself PRE-APPROVED!

The amount you offer for a home is not always the best bargaining position. At least it is not the most important one. More important to Sellers frequently is the strength of the Buyer or the length of time until closing. Often Buyers say to me that they have been "pre-qualified" by a lender. This means that they have spent a few minutes on the phone with a lender who has asked them a few questions about their finances. Based on the answers, the lender "pre-qualifies" them and issues a letter that they can show to a Seller.

Agents and Sellers know that such certificates are not a true picture of the qualifications of a Buyer. The reason is that none of the information has been verified! Frequently, when the credit check is run unknown problems surface! I’ve seen such things as recorded judgments, forgotten car loans (because the Buyer co-signed for a teenager’s first car), child support payments past due, blemishes due to past relationships, down payments that have not been in the clients' bank account long enough, the Buyer not being long enough on the job, etc.

So the advice is to get "pre-approved", which occurs AFTER all information has been verified. You are actually APPROVED for the loan subject only to the appraisal on your chosen property. This process takes anywhere from a few days to a few weeks depending on your situation. It' is a very strong negotiating tool. I recommend all my clients seek pre-approval prior to writing an offer to purchase a home.

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