3 Things you need to check to make sure your home buyer is well qualified to buy your home
Like when you construct a building, you need to go through a step by step process. That also goes the same in home buying or property investing. Pre-qualification process is the first step that you need to consider when you plan to buy your dream house. This builds the foundation for buying real estate properties that provides approval to the buyers. Such approval influences your decision whether you are capable to pursue your plans or not.
The approval is a strong factor in determining the success of this venture. This will be given by the lender and you need to show this to the seller and your broker to prove that you are capable of paying your mortgage. Once you hold such proof, this will strengthen your standing in any lending institution and to other people involved in real estate investment. If you are approved in the pre-qualification process, you are a step higher than other buyers who have not gone through the procedure.
Aside from that, another advantage that you can enjoy when you are pre-qualified is you can easily manipulate the negotiation process since you are confident enough. The haggling of prices will be a lot easier since the seller and broker are also secured that you have the ability to buy the house. You are given the certification saying that your loan is approved and you are eligible to acquire a property under certain terms and conditions. Your credit standing is also improved if you take hold of the certification letter. And the nice thing about this is your interest rates are fixed in a locked-in rate while you are still searching for the right property.
Regardless if you will do the entire home buying process or you are going to seek the help of a broker, the idea of being approved will make the people involved more secured. Any real estate agent will be more confident in dealing with other brokers if he is aware that his client has the ability to purchase a house. In fact, he can gather more prospects for you to choose from since the sellers will also be encouraged to promote their properties to you. It is like you are only a step away from getting your dream house. The broker can also be assured that he is not wasting his time, money and effort in doing business to others since he knows that your loan has been pre-approved.