The problem about pre-approval still persists today; some Edmontonians still prioritize viewing several properties before they are even pre-approved.
This is the problem that we at Team Leading Edge are actively trying to solve. The best solution that we can think of is still information dissemination.
Today, we’ll discuss why you should have yourself pre-approved first by your mortgage company and why Edmonton Realtors® are asking for pre-approval letters from buyers before showing them a property.
1. SAFETY AND SECURITY OF YOUR CHOSEN REALTOR®
Here’s the reality of the situation, a pre-approval letter is a form of a security feature for Realtors® since obtaining a pre-approval letter from a mortgage provider would mean that the buyer (you) have everything in order.
Mortgage companies just don’t hand out pre-approval letters. They research and do background checks to all their clients; employment history, credit history, etc.
2. EVIDENCE OF FINANCIAL CAPABILITY
Successful Realtors® are always trying to maximize their time. They don’t want to show hundreds of properties worth $500,000++ to a buyer who can only afford below that.
Pre-approval letters will determine the amount of property a buyer might be able to afford. It’s the “Reality Check” document.
3. MANAGE EXPECTATION
This is in support of the point we discussed on item #2. Pre-approval letters saves buyers and Realtors® precious time and it aids in managing expectations.
If a Realtor® knows how much a buyer can afford, s/he will focus on finding and submitting the best properties in the specific price-range. It will make the home buying process faster and ultimately make the move-in to the new residence sooner.
4. PROVIDES NEGOTIATION FIREPOWER
Serge, Joe and the rest of Team Leading Edge can use the pre-approval letter as a bargaining chip to get better deals and prices from sellers. This is very effective on a Seller’s Market Cycle where there’s a considerable amount of supply available.
Pre-approval letters can also be used to win over a home. If already seller received multiple offers from other parties who are not pre-approved, the chances of having the seller choose your offer is quite high.
5. STRICT REQUIREMENT
Some Edmonton home sellers have higher requirements than others; they may prohibit anyone whose not pre-approved from viewing their property.
In the minds of the sellers, the pros to this situation out weigh the cons. They simply do not want to waste their time entertaining guest who doesn’t have the resources to afford the property.
Bottom line, you should not take offence when Realtors® or sellers ask for your pre-approval. It’s for the benefit of all parties involved.
If you don’t have a mortgage company yet, you can check out our business partners in the mortgage industry here: Edmonton Business Partners
For more from Team Leading Edge, follow the team on Twitter at @teamleadingedge. Make sure to subscribe to Team Leading Edge to get newsletters on the Edmonton Real Estate market.
Note: Remember, you can access all our available Homes For Sale in Edmonton through our Edmonton MLS Listings page.
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