There are more reasons that ever before to be pre-qualified before making an offer or even beginning your search.  Not only will you know what you can comfortably afford but you will be in a better position to negotiate.

The recent changes in the financial world have certainly affected the availability of loans.  Lenders are asking for more documentation, reviewing appraisals and being far more careful in reviewing qualifications. 

Some advantages of being pre-qualified with your lender:

• Know that you can actually buy what you are considering.  Don't waste your time looking at properties that may be unrealistic.
• Negotiating leverage - A seller may be more willing to work with your price point on an aggressive offer knowing that you are a legitimate qualified buyer.
• Get your offer accepted.  If multiple offers are on the table the seller and seller's agent will likely take your offer more seriously knowing that you are pre-qualified.
• Save time, save money.  Take the time to go through the pre-qualification process so that you can act quickly when you do find the right property.  This will also help strengthen your offer because you will have the ability to offer a shorter time frame with regard to contract deadlines.  Seller's often take the terms into consideration when evaluating an offer.  Strong terms often equal better price.

Use a LOCAL Lender!!!  It is very important to use a local lender, especially in a resort market.  Local lenders understand the complexities involved with loans on property classifications that are unique to resort markets.  Do you know what a "condotel" is?  Our lenders do.  Many of the condo buildings in our area have on-site management & services which classifies them as a "condotel", which can require a totally different type of loan package.  Your out of town lender may suggest a loan package that would not apply to this type of property, which can create risk for a buyer.  Imagine finding out once you have passed your loan approval deadline that the lender can't lend on a property for an unforseen reason....your earnest money is now at risk.  There are a variety of other similar situations that could threaten a deal.  Also, local agents have relationships with local lenders.  We can be more involved with the process if we have a working relationship with a lender.  This helps to ensure that your approval and appraisal deadlines are met.  Did you know that your offer will be taken more seriously as well?  If the seller's agent knows the lender you have been pre-qualified with, you may have a better chance of getting your offer accepted.  Local lenders also have relationships with the local appraisers that can help to shorten contract time lines which gives you an advantage in being able to present the strongest terms possible.

There are many more reasons why it is good to be pre-qualified, especially with a local lender.

  Contact me for a list of my preferred local lenders.  There are a few that really stand out.  We would be happy to make recommendations based upon your requirements.