If you’re in the market for your next home, there’s one very critical step you need to take before you start submitting offers. Before you do anything else, you must get a pre-approval letter or proof of funds letter. Neglecting to do so could cost you your dream home.
Thankfully, the process of obtaining this document is quite simple. All you need to do is visit a lender, fill out a loan application, and provide them with the necessary documents. After this point, the lender will determine what kind of home you can afford and will issue a pre-approval letter. This letter essentially verifies that you’re qualified to move forward with a home purchase.
When sellers receive an offer, one of the first things they’ll check for is whether or not a pre-approval letter has been included. The presence of this letter will ultimately provide them with the peace of mind they need to feel confident in your ability to close. Sellers tend to see offers that come without a pre-approval letter as a major red flag.
The bottom line is that having a pre-approval letter or proof of funds letter could make or break your ability to strike a deal on your dream home.
If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.