When you are ready to purchase a home, it makes sense to negotiate from the strongest position possible. In the real estate market, sellers demand proof of buyers ability to perform. Professional Realtor’s and Brokerages require their clients be pre-approved before they actually show them properties.
Many individuals looking to purchase today put themselves at a disadvantage!
If we look at this from the Sellers perspective for a moment taking into account their position in the property. As if you were the Seller and wanted to sell your home, and time is always of the essence, would you accept an offer without Certificate of Financing Approval or be more inclined to negotiate your price and terms with an already pre-approved buyer. The answer is obvious. Why then, do so many buyers procrastinate when it comes to financing More often buyers wait until after they have found the home before they even apply.
What I have found is that savvy buyers usually get pre-approved to strengthen their negotiating edge and move quickly on the property once they find it. An unapproved or pre-qualified buyer loses the edge in negotiating and beating other buyers to the good deals.