Contrary to press reports, buying a home in the Tampa Bay area is still a hotly competitive game. When the right home comes along at an amazing price, you may not be the only one who notices. A pre-qualification letter must accompany every offer, regardless if you are looking at bank owned foreclosures, short sales or traditional sales in the Tampa Bay area. If you will pay cash rather than finance the property, then a proof of funds letter is required.
Credible
To compete against other buyers and eliminate unnecessary surprises, we recommend that you become pre-qualified by our TampaMoves Approval Department before visiting homes. Do you already have a pre-qualification letter from another lender? We can analyze the letter and ask questions to reduce the risk of surprises and strengthen your negotiating position.
Strong
Sellers consider a buyer’s financial strength during the negotiation process. Strong buyers with strong letters obtain the best deals. While a pre-qualification offers leverage during pricing negotiations, a pre-approval letter goes a step further by verifying a lender has made a commitment to finance your home choice up to a certain price. If you wait until after you find the right home to obtain a letter, it may be too late. Also, those who rush to obtain a last-minute letter may make a hurried or unwise decision.
Smart
The lender will also provide a “Good Faith Estimate of Closing Costs”, or GFE, that lists all the closing costs and the components of the monthly payment.
Local
Will your negotiating position be enhanced if your pre-qual letter was done by an out-of-state bank, or a mortgage broker without brand name recognition? Local lenders understand local costs and local customs.
Current
If your pre-qualification letter was done six months ago, how will that look in comparison to a letter written last week?
Distress Sales
If you are bidding on a foreclosure owned by Bank of America, would it help to have a pre-qualification letter from BofA? To take full advantage of falling prices and distress sales, you must be prepared to act and armed with the best possible leverage.
Act Now
This is why you have saved and maintained a strong credit score. Mow is the time to take advantage of your efforts. All it takes is filling out a 10 question form or making a quick phone call. Are you worried that a credit inquiry, or multiple inquiries might drive down your credit score? Read Credit Score Implications. Make the call.
Move-Up Buyer Issues
Are you trying to time the purchase of a new home with the sale of a previous home to avoid a double-move? If you are like most people, you just assume that financing will not be an issue because you have never had any problem qualifying in the past. If you will be financing the purchase, be advised that much has changed over the past twelve months. See Move-Up Financing Issues.
The Premium Value Home Buying System and the TampaMoves Approval Department put you in the best possible position to find, negotiate and buy the right home at the lowest price. Contact Annette, Doug or Dale Bohannon at Coldwell Banker Residential Real Estate in Tampa Florida today to take the first step. Call us at (813) 438-3334.
