Spring is coming and it’s time to get in the game. Thank you Jim Cramer.
Getting prequalified often means the difference between your offer acceptance or the “see you later folks. How do I know you can get a loan?” nasty gram from the seller’s agent. A seller is far more likely to say yes to your offer when backed-up with a pre-qualification from a viable lender.
A case in point: Recently we presented an offer for Sullivan County homebuyer, Mindy Smith. ( She’d be livid if we shared her real name.) Mindy put in a competitive bid for her dream house in Jeffersonville. she’d been eying it for several months.
Although there were no current offers on the table, the seller’s wanted to confirm Ms. Smith could realistically obtain a conventional mortgage within a reasonable time frame. That’s not an unusual or extraordinary seller request.
I spoke with Mindy and suggested she call a local lender in Grahamsville and get the ball rolling since the sellers were anxious to accept her offer. She’d need to explain her basic financial circumstances, provide her social security number, and allow a credit check.
Mindy agreed this was a sound suggestion and contacted a lender the day after our conversation. Two days later, the mortgage representative issued the prequalification letter. I called the seller’s agent and told her I was forwarding the pre-qual letter on to her that afternoon.
Mindy was exhilarated she was now armed and ready to move forward to having an agreed upon purchase price for her dream home. But, that didn’t happen.
In the ensuing days, while Ms. Smith was moving through the qualification process, another offer came in. A deal was negotiated and agreed to. When I called the selling agent, she simply said; “Sorry Mindy missed out on this one. Another qualified buyer came along and my seller’s accepted the offer. They had a prequal letter and we submitted that with the offer.