Hello, dear readers! I’m Grant Fetter, the Team Lead of The Grant Fetter Homes Team, a real estate brokerage team dedicated to helping you find your dream home or sell your property for the best value. Today, I want to delve into a topic that emerged from a recent social media discussion where I asked the question: “What financing is better, a local lender or an online lender?” This sparked an important conversation about the significance of buyers being fully approved before accepting an offer, a topic that holds immense value for both buyers and sellers in the real estate market.
The Financing Dilemma: Local Lender vs. Online Lender
Before we dive into the crux of the matter, let’s briefly address the financing options available to homebuyers. In today’s digital age, online lenders have become increasingly popular due to their convenience and often competitive rates. On the other hand, local lenders offer a more personalized experience and in-person support. The choice between the two ultimately depends on individual preferences and circumstances.
Why Full Buyer Approval Matters
Now, let’s shift our focus to the pivotal issue at hand: the importance of buyers being fully approved before accepting an offer. This process involves having all income and employment documents verified by the chosen lender. Why is this so crucial? Let’s explore it from both the seller and buyer perspectives.
From the Seller’s Point of View
Certainty and Reliability: Sellers, understandably, want assurance that the deal will go through smoothly. Accepting an offer from a buyer who is only prequalified can be risky. Prequalification is merely an estimate of how much a buyer can afford, whereas full approval signifies that the lender has thoroughly examined the buyer’s financial situation.
Reduced Stress: Sellers often want a quick and stress-free sale. By accepting offers from fully approved buyers, they minimize the risk of last-minute surprises or delays caused by financing issues.
Competitive Advantage: In a competitive market, sellers may have multiple offers to choose from. An offer from a fully approved buyer stands out as a more reliable choice, increasing the likelihood of it being accepted.
From the Buyer’s Point of View
Position of Strength: As a buyer, being fully approved puts you in a stronger negotiating position. Sellers are more likely to favor buyers with a higher level of financial commitment.
Peace of Mind: Full approval allows you to shop with confidence, knowing that you are looking at homes within your budget. It also helps you avoid the disappointment of falling in love with a property you later discover you can’t afford.
Faster Closing: With your financials in order, the closing process can move faster, giving you the keys to your new home sooner.
In the world of real estate, ensuring that buyers are fully approved before accepting an offer is not just a best practice; it’s a game-changer. From the seller’s perspective, it offers peace of mind, reliability, and a competitive edge. For the buyer, it means being in a stronger position, both financially and emotionally.
So, whether you choose a local lender or an online lender for your financing needs, remember that full buyer approval is the key to a successful real estate transaction. It’s a win-win situation, benefiting everyone involved, and ultimately, helping you make your real estate dreams a reality.
If you have any questions about this topic or need assistance with your real estate journey, please don’t hesitate to reach out to The Grant Fetter Homes Team. We’re here to guide you every step of the way. Happy home hunting!