"It's a Buyer's Market and I'm a Buyer-- What Do You Mean I Need Pre-Aproval?"

The process of buying a home many times begins with a dream, and lots of looking and planning that can start months before the decision to purchase is made. We designed our website www.janeterrell.com to help you do just that. But, when you're ready to take the next step, it's time to get prepared!

Those of you who are actively working with us to find and purchase properties right now have probably noticed that we have started asking buyers for letters of "pre-approval" or "proof of funds" at the beginning of the serious looking process. We are asked what these are, and why we are requesting them, so here's the answer!

"Pre-Approval" If you will be seeking a mortgage, this is a the step in the process. After a lender of your choice has done a preliminary review of your financial situation, they will issue you this letter. This is not a commitment for a loan, and does not tie you to a specific lender-- it is just an initial step of approval for financing. Usually there is an amount stating "Joe Smith is pre-approved for a loan up to $XXX".

"Proof of Funds" If you plan to make all or most of your purchase in cash, your financial institution can provide you with a letter stating that as of a certain date, there are sufficient funds to purchase a home at the price of $XXX.

Why are we asking for this ? If you have gone beyond the initial stage of looking and have made a commitment to actually purchasing your mountain home now, we want you to be in the best position possible when you are making your offer. YOU know that you have the funds available, but put yourself in the seller's shoes for a moment-- deals fall apart these days because buyers are not able to obtain the financing that they thought they could. The seller takes the home off the market for weeks, then is disappointed when the sale cannot go through. He becomes more cautious, and less apt to take offers that are not perfect. BUT if he knows that the buyer has already started the process of obtaining funds, or already has them, the offer is much stronger in his eyes. Maybe it is a few thousand dollars less than he had hoped for, but he knows that the financing will be there and the chances are good it will close. The chances that he will accept the offer are much higher! Almost ALL forclosure and short sale transactions will require this before they will even consider an offer.