“I have never had to get a loan before I bought a house before!”
Sadly, the world has changed. When I bought my first house I walked into the bank, showed them some investment statements, they said 20% down…I said done and the loan was issued 2 weeks later at 5.75%. That was 1971. Today the seller of a home may have been messed with or the real estate agent knows enough to ask for information. And in the Denver residential real estate market here are the 4 Big Reasons:
BUYER’s ARE NERVOUS. Can I really afford that? What will it cost? It answers your questions
Sellers are nervous! When you want to buy a home a large part of negotiating a good deal these days is making the Seller comfortable with you as a Buyer. They ask: “Can the buyer afford it?”, “Do they have a loan?” Answer their questions before they ask.
Lenders are nervous. Everyday the underwriting guidelines change. And it is hard to get a loan approval at 5:30 Friday evening.
Finally, it is a huge negotiating tool!
If you were a Seller and you had two offers on your home, and both were equal in all terms except one has a pre-approved loan and the other had no loan information, which would you accept or counter?