Does Buyer Pre-Approval Help Sell Your Home?
Real estate buyers who are planning to borrow money often choose to get pre-approved for a mortgage loan. Does buyer pre-approval help you sell your home? The answer is – it may help you, but it’s no guarantee that buyer will get a mortgage to close a transaction on your house.
Mortgage pre-approval is not a complicated process. Many people shopping for homes apply for pre-approval, for their own information and to share it with prospective sellers. Sellers need to know what mortgage pre-approval means, and whether it helps them make a sale.
Buyers must supply their chosen lender with proof of employment, annual income and enough cash to use as a down payment. Their credit history is also checked. Based on the information supplied by the buyers and the credit score supplied by credit agencies the mortgage company determines whether it would loan them mortgage money. And the mortgage company sets a limit on the dollar amount it will loan.
Selling Your Home Without Buyer Pre-Approval
Mortgage pre-approval is not necessary for any buyer. It is an option, not a necessity, because pre-approval is not the same as final approval. When buyers make an offer on your home and it’s subject to financing there is a long approval process that includes an appraisal on the home.
Both the buyers and the home are analyzed for the lender’s own purposes. The mortgage company does its own calculations to determine a risk factor, and it specifies requirements for both the buyer and seller.
For example, the lender might require buyers to verify the source of funds to be used as a down payment. Lenders want to know if any part of the money was a gift from parents or grandparents or if the buyers saved it on their own. This is significant to a lender because it gives them information about the buyers’ financial habits.
Another example might be a requirement for the seller to replace the roof prior to closing the real estate transaction. If the lender determines the roof is bad, it will not loan money to the buyer until the seller replaces the roof.
Final loan approval for mortgage financing is all that really matters to a home seller, and waiting for final approval can be a long, frustrating process lasting a month or longer.
Selling Your Home Without Loan Approval
It’s possible to completely avoid the need for buyer pre-approval and final loan approval as well. Selling your home without loan approval is easy when you sell to a cash buyer. A buyer paying cash has no need to get approved for a loan, and your home will not be subject to lender requirements.
Get in touch with the cash buyers at We Pay Fast for a quick, easy sale without any loan approval requirements. You may have your cash within a week and move on to your next home, paying no real estate commission, taxes, insurance or legal fees. Call 405-521-1807 or email [email protected]