Why Pre-Qualification with a Local Lender is Key for Gulf Coast Property Searches
As an expert real estate advisor in Orange Beach, I want to share a story about a client who missed out on a property because he was not prequalified. When he called me, he was eager to find an oceanfront condo and mentioned planning to obtain a loan. I emphasized the importance of getting prequalified by a local lender before we started looking at properties.
Despite my advice, my client decided to start viewing condos without prequalification. Over the weekend, he and his wife found a beautifully furnished unit with stunning views that they fell in love with. He was eager to make an offer and asked me to start drafting it. I reminded him again to contact the local lenders I had recommended. Unfortunately, it was Sunday, and he couldn't reach any lenders.
Meanwhile, another buyer had already spoken with a local lender and gotten prequalified before beginning their condo search. Because of this advanced preparation, they were in a stronger position to make an offer immediately when they found the right property. They submitted their offer with a pre-qualification letter attached, which ultimately secured the purchase agreement. Their offer was favored over my client's, even though he was higher in price. The seller felt more comfortable with the offer backed by a qualified and local lender, knowing there was solid financial backing.
This illustrates a critical risk: entering into a contract with a buyer who hasn't even spoken to a lender or received pre-qualification. What if the buyer finds the rates unappealing or can't qualify for the loan? Such scenarios can lead the seller to pull the property off the market and miss out on more qualified and earnest buyers, potentially leading to a longer time on the market and even a lower sales price.
To avoid such pitfalls, being prequalified by a local lender not only strengthens your offer but also demonstrates that you are a serious buyer, which is crucial for making a competitive offer when you find the perfect property.
In the end, leveraging my extensive local connections, I was able to find another condo not listed in the MLS, which they liked even more than the first. This time, he was prepared with a local prequalification letter, enabling him to make a strong and successful offer. It was a delight to help them secure their dream condo and a valuable lesson in the importance of being fully prepared in the home-buying process.
Posted by Meredith Amon on
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