Why You Should Qualify for a Mortgage Before You Make an Offer
In today’s real estate world, your offer to purchase will be given more consideration and merit when it is accompanied by what the mortgage industry calls a 90% letter. This letter will simply state, based upon the information you have provided at the time to the lender, what mortgage amount you qualify for and whether or not you must sell an existing property in order to close on a new one.
This 90% letter is not a 100% commitment from a lender and you, as a buyer, still have a 30 to 45-day credit process to go through before closing, but it assures a seller that you are serious about a purchase and have taken the initial steps to secure a mortgage. It demonstrates your intent to purchase a home and assures the seller that you have made an offer in the price range for which you are purportedly qualified.
Connie Yoshimura is the Owner and Broker of Berkshire Hathaway HomeServices Alaska Realty. With over 40 years of residential real estate experience, she continues to be a leader in Alaska’s housing market. Most recently, she sold the highest-priced home ever recorded in the Alaska MLS.