In today’s Sarasota real estate market, a cash buyer trumps a buyer requiring a loan, all things being equal. So how does a buyer level the playing field in a competitive market like ours ? Go in with a pre-approval letter.
The only way a buyer can compete against a cash offer is to prove that he/she has the income, assets and credit to be approved for a mortgage on the property in question. A borrower will have to obtain a pre-approval letter from their lender at some stage anyway, so it’s best to get it up front and attach it to an offer. To a prospective seller, a pre-approval letter gives then confidence that you, as a buyer, can be taken seriously.
Maureen and I always ask our clients to obtain a “PAL”. And it holds more weight if it comes from an underwriter as opposed to a loan officer. A PAL does not guarantee a loan, just a confirmation that you qualify for the loan. Additional data, such as an appraisal, would still be needed. But it’s a necessary first step. We have the local Sarasota mortgage contacts for you. Give us a call if you would like us to refer you to a capable local lender.
Patrick Doherty 1801 Main St Sarasota, FL 34236