Pre-Approval... A must for today's buyers and sellers.
Posted May 14, 2008 11:12 a.m. EDT
The mortgage landscape has changed drastically over the past few months. Many of the traditional mortgage options for consumers are long gone – having taken the path of Beta Video Tapes and IBM Select Typewriters…
What this means for consumers is that one of the first and most important things one must do when thinking about purchasing a home is to get pre-approved by a lender. A pre-approval has become critical in today’s market for two main reasons. First – it allows the borrowing consumer to find out exactly how much they can afford, what types of mortgage options they can use as their mortgage vehicle, and relays confidence and peace of mind when entering into a real estate transaction.
Secondly – it gives sellers the confidence to know that a transaction will actually close. A problem that has become exacerbated by diminishing mortgage options and consumers who are not qualified to purchase a home.
A pre-approval is a much more detailed version of the standard “pre-qualification”, and should really be used with every consumer wanting to enter into a purchase contract in today’s highly volatile purchase market.
Returning to a level of confidence in our market – both for buyers and sellers – will help to begin the process of a return to normalcy in this very one sided housing market that we’re currently experiencing.
Jeremy M. Salemson
Corporate Investors Mortgage Group, Inc.