As we know, our current market is extremely competitive. This means there is a strong likelihood that buyers in our Tampa area market will encounter multiple offer situations while engaged in their home search.
To combat these potentially difficult conditions, it’s critical for buyers to approach the market with a strong pre-approval letter in hand. Also, the distinction between a pre-approval and a pre-qualification letter is key—so be careful not to confuse these terms as you proceed.
Allow me to clarify how these two items differ. A pre-qualification letter indicates that you may qualify for a loan up to a certain amount based on information you have provided to your lender.
A pre-approval letter, on the other hand, is much more powerful. A strong pre-approval letter states that your income, assets, and credit have all been verified by the lender. The concrete nature of this document will help reassure sellers of your credentials, and of the fact that making a deal with you would be a secure decision.
Presenting a pre-approval letter alongside your offer is a great step to take as a buyer, but it is equally important to work alongside a strong local lender in generating this document and in navigating the deal, overall.
If a seller has multiple offers from between which they must choose, they will tend to gravitate toward offers that are backed by recognizable local professionals. Working with a lender who understands, and has a positive reputation in, the Tampa area will be of great benefit to you. Many out-of-state banks or online lending services are out there, but working with them will not provide the same results or the same level of service as seeking the guidance of someone from our area.
Ultimately, entering our market as a prepared, professionally backed buyer will be essential to your success.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.