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Every day I receive calls from buyers interested in one of the listings to sell, and I have always run into the buyer who wants to see the residential, commercial or land property without a pre-qualification letter from their financial institution of choice. 

I always get the same 3 responses:  

1. I just want to see the property and if I like it then I do the pre-qualification.

In this case I notify that the importance of performing a Pre-Qualification, goes beyond a simple letter to show to the brokers and owner of the property to coordinate the showing of the property. Since the mortgage originator will be guiding you on how much the approximate closing costs will be. This is the right way to start the purchase of your property. If you wait until you find the property you like without going through this first exercise, all the time and effort you put into it was wasted because you found the property of your dreams, but you do not qualify to buy. It can also happen that you qualify for the purchase of your property but because you do not have the funds required for the closing costs, you are unable to purchase the property. 

2. I have a pre-qualification letter six months ago and every time I call a Realtor he always asks me for a recent letter. 

Since the purchase to be made is through credit financing, it is important to go through the same exercise with your mortgage originator so that you can find out if the pre-qualification letter remains the same, less or more than six months ago. If your current credit expense is higher, your pre-qualification may be lower or you may not qualify. 

3. I do not need a pre-qualification letter as my purchase is in cash. 

In this case it is necessary to provide a letter of funds from your banking institution showing that the funds for the purchase are available in your account. Your account number does not have to come out in full, but if the available cash balance for the purchase of the property is not available and there is sensitive information that you do not wish to share, it can be omitted. The important thing is that this letter is certified by your banking institution to start the process of showing the property, and if the buyer is interested in the property, he/she can make an offer whenever he/she wishes. Achieving a reliable transaction through the correct mediation of the Real Estate Broker who initially represents the seller, but if the buyer does not have a Real Estate Broker, once the buyer signs the purchase contract, the Real Estate Broker is committed to ensure the interests of both parties, achieving a successful real estate transaction.  

Finally, seeing the pre-qualification letter or letter of funds is the right tool to start any successful negotiation. Achieving a pleasant negotiation during the whole process until its culmination.

For more information, write to us and we will be glad to advise you.

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