a division of Cascade Financial & Co.
Pre-approval means getting approved for your mortgage ahead of time. Don't confuse this with pre-qualifying. Pre-approval is where you actually apply for the loan and get approved by a lender for specific amount of money and a specific loan to value ratio. The loan to value ratio is the percentage of the loan amount in relation to the value of the home, the difference is your down payment. We have been able to get many of our customers their dream homes with as little as no down payment. Now when you find your dream home, you only need an appraisal and you can close on your home in only one week! This is a very valuable buying tool! It gives you the negotiating power of a cash buyer, which often could save you thousands of dollars off the price of your dream home. Here's how...
You and another buyer both put offers on the same home at the same time but your offer is for $1,200 less. The other buyer didn't get pre-approved, this means if the seller accepts their offer, they must take their home off the market for a month or more while the buyers go through this process. If they don't get approved then the sellers have to start all over by putting their home back on the market again.
Most people believe that a bird in the hand is worth two in the bush and would rather have your guaranteed offer of $1,200 less with a quick, smooth cash-like closing. You just saved $1,200! Imagine how much more negotiating power you would have on a distressed property where the sellers NEED cash fast, or on a foreclosed or repossessed property.
This really works!
Another advantage is that your Realtor will work extra hard for you, concentrating all his efforts on finding you your dream home since he knows you're already approved for a loan. The only thing standing between him and a sale is that he needs to find you your dream home. Pretty strong incentive!
Also, if you have any credit blemishes or any other unique situations, we have time to take care of them before you enter into contract and start making moving plans. It will also give you tremendous peace of mind, and besides, it's something you need to do before buying a home anyway!
Cascade Financial & Co. will be happy to provide you with a pre-approval and give you a certificate worth $100 off your closing costs. Call today to arrange a convenient appointment or to get pre-approved by mail, in person, or over the internet.
