Before you get into your Realtor’s car, it’s important that you get pre-approved for financing. This is true regardless of whether or not you are considering the purchase of a new primary residence or an investment property. Being pre-approved is the equivalency of having cash in hand. Here are the top three reasons why it’s important to be proactive with your residential financing:

• Distressed sellers. There are more home sellers in distressed financial states than ever before. If you are pre-approved for a mortgage, it’s similar to being a cash buyer. By being pre-approved, you can buy in a tighter time frame without having to endure the full mortgage loan processing procedure. Distressed home sellers are responsive to speed.
• Foreclosure properties. When bidding on a foreclosed residential property, it is common for the lender to require a cash downpayment. Also, these lender/sellers usually want pre-approved buyers or cash buyers as their risk in entering into a sales contract with buyers of this type is lessened. 
• Human nature. In any type of residential real estate transaction, emotions come into play. As such, any reasonable seller of a home will look upon a pre-approved buyer as being lower risk, better prepared and an overall higher quality candidate.  

Remember, in the real estate business, money talks – and buyers with cash in hand are the buyers who get the best deals.

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